LO

—continuedfromfro

ntflap—

$19.95USA/$23.95CAN

Praisefor

W

InadditiontoexaminingGoogle’sbreakthrough

E

businessstrategiesandnew

businessmodels—

whichhavetransformedonlineadvertising

G

Inmanyways,Googleistheprototypeofa

Google

andchangedthewaywelookatcorporate

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explainswhyGooglemaybeaharbingerof

SPEAKS

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wherecorporateAmericaisheaded.Shealso

A>3/9A

addressescontroversiessurroundingGoogle,such

“It’snothardtoseethat

Googleisaphenomenalcompany....At

o

culturethatencouragescreativityamongits

employees;andtakesitsroleasacorporatecitizen

ascopyrightinfringement,antitrustconcerns,and

SecretsoftheWorld’sGreatestBillionaireEntrepreneurs,

personalprivacyandposesthequestionalmost

Geico,wepaytheseguysawholelotofmoneyforthisandthatkey

g

veryseriously,investingin

greeninitiativesand

SergeyBrinandLarryPage

everysuccessfulcompanymustface:asGoogle

word.”

grows,canitholdontoitsentrepreneurialspiritas

—WarrenBuffett

l

wellasitsinformalmotto,“Don’tdoevil”?

e

developingthelargestcorporatefoundationin

theUnitedStates.

FollowinginthefootstepsofWarrenBuffett

“Googlerocks.ItraisedmyperceivedIQbyabout20points.”

SPEAK

SpeaksandJackWelchSpeaks—whichcontaina

conversationalstylethatsuccessfullycapturesthe

Whatstartedoutasauniversityresearchproject

—WesBoyd

essenceofthesebusinessleaders—GoogleSpeaks

conductedbySergeyBrinandLarryPagehas

PresidentofMoveon.Org

revealstheamazingstorybehindoneofthemost

endeduprevolutionizingthe

worldwelivein.

GoogleSpeaksputstheseincredibleentrepreneurs

“Googleismyrapidresponseresearchassistant.It’stheSwissArmy

S

importantnewcompaniesofourtimebyexploring

thepeopleandphilosophiesthathavemadeita

inperspectiveandshowsyouhowtheirdriveand

knifeofinformationretrieval.”

globalphenomenoninlessthanfifteenyears.

determinationhaveallowedthemtocreateoneof

—LloydGrove

today’smostpowerfulcompanies.

ENTREPRENEURS

SECRE

columnist,Portfolio.com

TSoftheWORLD’SGREA

Writtenbybestsellingauthor

JanetLowe,thisbook

offersanengaginglookathowGoogle’sfounders,

JANETLOWEistheauthorofthebestselling

“Who’safraidofGoogle?Everyone.”

SergeyBrinandLarryPage,transformedtheir

WarrenBuffettSpeaks,JackWelchSpeaks,and

,SERGEY

—Wiredmagazine

visionofabetterInternetsearchengineintoa

BillGatesSpeaks,allfromWiley.Herarticleshave

BRINandLARR

businesscolossuswithabout$16billioninannual

appearedinsuchpublicationsasNewsweek,the

“Writersofthepasthadabsinthe,whiskeyorheroin.IhaveGoogle.”

revenue.LowediscussesthevaluesthatdriveBrin

ChristianScienceMonitor,

theLosAngelesTimes,

TESTBI

—MichaelChabon

andPage—

—forexample,howtheybothlivefairly

andtheSanFranciscoChronicle.

authorofTheAmazingAdventuresofKavalierandClay

LLIONAIRE

modestlives,despiteeachhavinganetworth

YP

AGE

inexcessof$15.9billion—

—anddetailshowthey

JacketIllustration:©MichaelWitte

havecreatedaculturethatfostersfunwhile,at

thesametime,keepingGoogleattheforefrontof

technologythroughrelentlessR&Dinvestments

andimaginativepartnershipswithorganizations

suchasNASA.

8/<3B:=E3

—continuedonbackflap—

ffirs.inddii

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Google

SPEAKS

ffirs.inddi

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ffirs.inddii

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Google

SPEAKS

SecretsoftheWorld’sGreatest

BillionaireEntrepreneurs,

SergeyBrinandLarryPage

JANETLOWE

JohnWiley&Sons,Inc.

ffirs.inddiii

3/26/092:58:28PM

Copyright©2009byJanetLowe.Allrightsreserved.

PublishedbyJohnWiley&Sons,Inc.,Hoboken,NewJersey.

PublishedsimultaneouslyinCanada.

Nopartofthispublicationmaybereproduced,storedin

aretrievalsystem,ortransmittedinanyformorbyanymeans,electronic,mechanical,photocopying,recording,scanning,orotherwise,exceptaspermittedunderSection107or108ofthe1976UnitedStatesCopyrightAct,withouteitherthepriorwrittenpermissionofthePublisher,orauthorizationthroughpaymentoftheappropriateper-copyfeetotheCopyright

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Department,JohnWiley&Sons,Inc.,111RiverStreet,Hoboken,NJ07030,(201)748-6011,fax(201)748-6008,oronlineat

http://www.wiley.com/go/permissions.

LimitofLiability/DisclaimerofWarranty:Whilethepublisherandauthorhaveusedtheirbesteffortsinpreparingthisbook,theymakenorepresentationsorwarrantieswithrespecttotheaccuracyorcompletenessofthecontentsofthisbookandspecificallydisclaimanyimpliedwarrantiesofmerchantabilityorfitness

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Forgeneralinformationonourotherproductsandservicesorfortechnicalsupport,pleasecontactourCustomerCareDepartmentwithintheUnited

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Wileyalsopublishesitsbooksinavarietyofelectronicformats.Somecontentthatappearsinprintmaynotbeavailableinelectronicbooks.FormoreinformationaboutWileyproducts,visitourwebsiteatwww.wiley.com.

LibraryofCongress

Cataloging-in-PublicationData:

Lowe,Janet.

Googlespeaks:secretsoftheworld’sgreatestbillionaireentrepreneurs,SergeyBrinandLarryPage/JanetLowe.

p.cm.

Includes

bibliographical

references.

ISBN

978-0-470-39854-8

(cloth)

1.

Brin,

Sergey,

1973–2.

Page,

Larry,

1973–3.

Computer

programmers—UnitedStates—Biography.4.Businesspeople—

UnitedStates—Biography.5.Internetprogramming—UnitedStates.

6.Google(Firm)7.Google.8.Websearchengines.I.Title.

QA76.2.A2L692009

005.1092—dc22

[B]

2009004121

PrintedintheUnitedStatesofAmerica

10987654321

ffirs.inddiv

3/26/092:58:44PM

DedicatedtoStephenPlaxe,CarolynMuller,

AudreySniegowski,DaleandKathyLowe,

JadeEaston,andallmyotherAngels.

Thankyou.

ffirs.inddv

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ffirs.inddii

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ffirs.inddvi

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Contents

Acknowledgments

xiii

INTRODUCTION1

THEGOOGLEGUYS

13

SergeyBrin

13

RussianRoots

13

AmericanPassage

14

EducatingSergey

15

TheRoadtoStanford

15

BoyGeniustoAdultGenius

16

WeddingonaCaribbeanSandBar

17

23andMe18

FlyingHigh

20

LarryPage

21

CradledinaComputerCulture

22

NikolaTesla,Page’sHero

23

Tesla’sStory

24

TheTeslaCar

25

vii

ftoc.inddvii

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viiiCONTENTS

MotivatedbyMontessori

26

TheLeadershipProgram

27

TheSolarRacer

28

GoWest,Larry

28

Lego-centricity29

MensaBoy

30

LarryGetsMarried

30

TheX-Prize

31

NoMoreLaundry

32

ThePowerofPartnership

33

ForgingtheStanfordConnection

35

ACreativeEnvironment

35

APoignantHistory

37

AnAcademicoran

Entrepreneur?

39

AGrimGoodbye

39

NetworkingatItsBest

40

BurningMan

42

ADULTSUPERVISION

44

TheCollectiveWisdomofSiliconValley

45

He’sBeentheRock;They’veBeentheRockets

46

AManofInfluence

47

ClimbingaDifferentKindofMountain

50

INTHEBEGINNING

51

TheUltimateSearchEngine

55

NotInventing,butImprovingUpon

57

LookAroundYouforInspiration

59

HowSearchWorks

60

PlatformPower

63

OpenPlatform

66

ftoc.inddviii

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Contentsix

GOOGLEBYANYOTHERNAME

68

ABlessedBlunder

68

FromNountoVerb

69

PlayingwiththeName

70

TheGoogleLogo

71

TheGoogleDoodle

72

GoogleZeitgeist

74

ACOMPANYISBORN

78

Yahoo!DrewtheMap

79

TheRequisiteGarage

81

TheVentureCapitalists

83

TheElusiveBusinessPlan

86

InvestinginWildIdeas

88

GoodIdeasPuttoGoodUse

91

DealingwithDarkMatter

91

AversiontoAdvertising

93

AdvertisingthatDeliversResults

95

TwoWaystoAdvertise:

AdWordsandAdSense

96

ExtendingtheGoogleReach

100

TheScienceofAdvertising

101

GoogleDidn’tAdvertiseItself—atFirst

101

BirthoftheGoogleEconomy

104

GOINGPUBLIC

106

“We’reDifferent”

109

TheDutchAuction

111

BuffettonGoogle

113

BerkshireHathaway’sShare

StructureversusGoogle’s

114

ftoc.inddix

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xCONTENTS

ThePlayboyInterview

116

TenYearsLater

118

THEVISION

123

MakeItUseful

125

TheManyWaystoGoogle

127

MakeItBig

132

WeServetheWorld

133

MakeItFun

135

GoogleUsersHearkentotheCall

138

Don’tDoEvil

139

HowGoogleDefinesEvil

140

TheMottoLosesSomeShine

143

CanFreeSpeechGoTooFar?

144

MakeItFree

146

GOOGLECULTURE

148

NewManagementStyle

149

TenThingsGoogleHasFoundtoBeTrue

153

RidingtheLongTail

156

20PercentProjects

157

PerpetualBeta

159

FabledWorkplace

160

AnAlternativePointofView

163

Googleplex164

GoogleinIreland

168

TopTenReasonstoWorkatGoogle

169

TheBattleforBrainpower

171

GuardingtheSecrets

177

ftoc.inddx

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Contentsxi

GOOGLEGROWSUP

180

ConflictsandControversy

181

ClickFraud

182

Avoiding—orNotAvoiding

—Pornography

184

PrivacyIssue

188

AdvertisingProducts

190

Gmail192

StreetView

193

CanTheySnoop—andWillTheyTell?

197

Hello,HumanRights

200

TheGreatChineseFirewall

201

PrinciplesofFreedom

203

CopyrightInfringement

205

TheAuthors’Revolt

205

GrandAmbitions

206

TheSnippetDefense

208

WhosePropertyIsIt,Anyway?

209

AllAboutAdvertising

209

TheGame-ChangingSettlement

210

LawsuitsEverywhere

212

GoogleGetsanAirplane

218

GoogleGetsaSatellite

220

GOODCITIZENGOOGLE

223

Google.org—thePhilanthropicPart

225

GoogleandtheEnvironment

227

RenewableEnergyLessthanCoal

229

GeothermalPower

230

EnergyfromtheSea

230

Energy-EfficientGoogleplex

231

ftoc.inddxi

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xiiCONTENTS

GOOGLE’SFUTURE

233

ArtificialIntelligence

238

OnwardtoWeb3.0

241

CloudComputing

243

YouTube248

TheGooglePhone

250

WhiteSpaces

254

THEDOMINANTPOWERINTHEINDUSTRY?

259

Google,Microsoft,andthe

InternetCivilWar

264

TheBattleofYahoo!

267

GatesonGoogle

271

CONCLUSION273

LessonsfromLarryand

Sergey

278

TheTraitsofThoseWhoChangetheWorld

279

Timeline

281

Glossary

288

Notes

295

Permissions

315

ftoc.inddxii

3/25/093:02:01PM

Acknowledgments

Thankyoutothefollowingpeoplefortheenormous

credittheydeserveforthisbook:JoanO

’Neil,Kevin

Commins,EmilieHerman,andMaryDanielloatJohn

Wiley

&Sons,thestaffatCapeCodCompositors,my

literaryrepresentativeAliceMartell,copyandcontent

editorLynneCarrier,andadvisorsandhelpersAlan

Bradford,JackBrandais,WarrenBuffett,BenandCarol

DeBolt,TrudyJenzer,John

McDermott,andProfessor

JoelWest.

xiii

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Google

SPEAKS

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Introduction

Atthetenthbirthdayof

GoogleInc.,foundersLarryPage

andSergeyBrinstoodonthegroundsofVandenberg

AirForceBaseincentralCalifornia.Theywatchedin

wonderasastate-of-the-artDelta2rocketblastedinto

theatmosphere,carryingaGeoEye-1satelliteinto

orbit.

Thesatellite,adornedwiththeGooglelogo,wouldsend

backrazor-sharpphotostobeusedinthecompany’s

popularmappingservice.1Whatagloriouswaytocele-

bratethefirstdecadeofacompanythatitselftookoff

likearocketfromitsverybeginning.

ChrisWinfield,whoheadsthesearch-engineadfirm

10e20,notedthatinaveryshorttime,Googlehasbecome

arage,theequivalentoftheBeatlesduringthe1960s.“It’s

prettyamazing,it’salmostliketheyareincontrolofthe

world.”2

Thestoryofthesearch-enginecompanyGoogleand

itstwoyoungfoundersisloadedwithsuperlatives,

1

cintro.indd1

3/25/093:00:32PM

2

GOOGLESPEAKS

secrets,andsurprises.Onethingiscertain:TheGoogle

guys,LarryandSergey,bothnow36,havebecomethe

undisputed“lordsofallinformation.”3

In2006,TimemagazinecalledGooglethe“smartest

companyoftheyear

”andoneofthecentury

’smost

game-changingenterprises.Googlewascrownedthe

world’slargestsearchengineandoneofthebest-

known

globalbrands.Praiselikethatcouldwellgotoacom-

panyleader’shead.

TheGooglefoundershavebeendescribedinmany

ways,includingtheThomasEdisonsoftheInternet.Brin

andPagearethetwinPrinces

ofHighTechnologywho

pulledtheproverbialswordfromthestone.Theywere

groomedforgreatnessinthecomputerfieldfrom

infancy;theytraveledtoaholyland(StanfordUniver-

sityandSiliconValley)toprovetheirmettleinbattle.

Theyslewawholedenofdragonsandemergedfrom

thequestwithflagsofvictoryflying.Theirstoryisa

classichero’sjourney.

LarryandSergeywereaccustomedtotheroleofhigh

achievers.Botharesonsof

scientists,andbothgrewup

intechnology

-orientedhouseholds.Bothwerebright

andaccomplishedinschool.AtStanfordandinSilicon

Valley,theyweresurroundedbyacourtwhoknewthe

landscapeofthatcharmed

kingdom.Theirprofessors

wereamongthebestinthefieldofcomputerscience.

Hisbrotherhadalreadysetupacompanybythetime

cintro.indd2

3/25/093:00:33PM

Introduction3

LarryenrolledatStanfordUniversity,andthebrother

latersoldittoYahoo!.Sergey’sfather-in-lawisaStan-

fordphysicsprofessor.Hissister-in-lawwasaSilicon

Valleyventurecapitalist.

Clearly,bothmenwereexceptionallysmartandhad

entrepreneurialpersonalities

—anditwasasifthey

quicklyrecognizedthepotentialmirroredinoneanother.

TheyfollowedtheirdestinywhentheydevelopedGoogle

searchsoftware.Andthecommunityaroundthem,ever

alerttothenextbigideafromtechiesjustbarelyoflegal

age,wasjustwaitingforthemtostepup.

TosaySergeyandLarryweretrainedfrombirthfor

whattheybecamedoesnotdiminishthevastimpor-

tanceormeaningofwhat

theyhavedone.Inthe12

yearssincetheyfirstbegancollaboratingonagraduate

schoolproject,theGoogleguyshave:

•Startedabusinessinacollegedormroomwithno

moreassetsthanagreatidea.

•Builtthelargestindexof

Webpagesintheworld.

GooglecatalogueditstrillionthWebpageinthe

summerof2008.

•Launchedwith

$100,000privatecapitaland

developedintoapubliccorporationwithamarket

capitalizationofaround$100million.

•Expandedfromjustthetwoofthemtomorethan

20,000employees.

cintro.indd3

3/25/093:00:33PM

4

GOOGLESPEAKS

•Growntheircompanyintoagiantwitha1.5

-

million-square-footheadquartersinMountain

View,California,plustwodozenotherU.S.offices

andtechnicalcentersinmore

than30countries.

•Gatheredacustomerbase,startingwiththose

usingacollegewebsiteandbecomingoneofthe

mostglobalcorporationsinexistence.

•SpreadfromasingleservicetoaWebportalwith

dozensofservicesandproducts

•DominatedtheInternetsearchindustry,handling

morethan70percentofallU.S.searches.

•Developedadvertisingrevenuesofaround

$16

billionayear.Thisisnearlyasmuchadvertising

revenueasgeneratedbythefourmajorTV

networkscombined.

SergeyandLarrywererankedasnumbers32and33on

Forbes’2008listofbillionaires,witheachof

themworth

morethan$18billionatthetime.Theysubsequently

lostabout$6billioninthevalueoftheirGooglestock,

buttheyremainedfabulouslyrich.

Withtheirfortunecamefame.Notsomanyyears

afterGoogledebuted,LarryandSergeyvisitedan

Israelihighschoolforgiftedmathstudents.When

thepairwalkedonthestageintheauditorium,they

weregreetedwitharoarusuallyreservedforrock

stars.“Everystudentthere,manyofthemimmigrants

cintro.indd4

3/25/093:00:33PM

Introduction5

likeSergeyfromtheformerSovietUnion,knewof

Google.”4Andlikebuddingscientistseverywhere,

manyofthestudentshopedtoachievethesamesuc-

cessandstatus.

Despiteadistinctnerdiness,theirregaldemeanors

haveshownforthinthewaytheyinitiallymarketedtheir

company,astheydealtwithventurecapitalists,intheway

theychoseachiefexecutiveofficer,inthepathbywhich

theytookGooglepublic,andlater,whendealingwith

contentiousissuessuchascorporatesecrecy,privacy,the

intellectualpropertyofothers,corporategovernance,and

newproductdevelopment.Theyinvariablyactedinde-

pendentlyandwithself-assurance,ifnotwithagooddose

ofdivineright.

“Therehasneverbeenacompany,

”wroteauthor

KenAuletta,“whoseinfluenceextendedsofaroverthe

medialandscape,andwhichhadtheabilitytodisrupt

somanyexistingbusinessmodels.”5

Tosurvivetheeconomicdownturn,Googlehashun-

kereddown,prioritizinginvestmentsindisplayadver-

tising,onlinebusinesssoftware,andmobile

telephone

ads.Nevertheless,thecompanyremainsrobust.

PageandBrinhavebecomeaboutaspowerfulasitis

possibletobeinthehigh-techindustry.Andtheyhave

beenabletospinthatpoweruptoagloballevel.In

GreatBritain,thenewspaperTheGuardianpublishes

theMediaGuardian100list,rankingthemostpowerful

cintro.indd5

3/25/093:00:33PM

6

GOOGLESPEAKS

individualsinmedia.Therollembraceseverysector,

includingprintnews,broadcasting,publishing,adver-

tising,anddigitalmedia.LarryandSergeytookthetop

slot.Microsoft’sSteveBallmerwasseventhonthelist.

Yahoo’sJerryYang,whojustmonthsbeforewasaSili-

conValleycelebrityentrepreneur,wasnottobefound

Inordertoexpandtheiraudience,potentialtargets

foradvertising,Googlehascomeupwithanastounding

arrayofproducts.Theseincludeanonlineclassified

advertisingsite,aprojecttoscaneverybookeverpub-

lishedandputexcerptsonline,e-mail,instantmessag-

ingservice,mobilephonesoftware,andsoon.Google

alsosellscontent,forexample,viaanonlinevideo

store

sellingTVshowsandNationalBasketballAssociation

games.

It’seasytothinkofadvertisingsimplyasaneconomic

activity,albeitasomewhatannoyingonetomanycon-

sumers.Butadvertisingisclearlymorethanthat.“You

cantelltheidealsofanationbyitsadvertising,”wrote

travelwriterNormanDouglasin1917.6

EventhoughGooglemanagementislockedinonadver-

tisingprofits,thereistime

forfun.Googlegetsalittle

whimsicalwithsuchdreamsasbuildingaspaceeleva-

torthatcandelivergoodstothemoon.Googleismore

thanaplacetosneakinavanitysearch,learnmore

aboutablinddate,orclickonads.

cintro.indd6

3/25/093:00:34PM

Introduction7

LarryPageandSergeyBrinhavebeenthecutting

edgeofInternetsearchandhavemanagedtheirleading

positionssuperbly.Evenmoreintriguingistheir

involve-

mentinsomanyotherfront-runningtechnologies.They

playedaroleinfourofTimemagazine’sbestinventions,

includingthefirstandsecond.Firstplacewentto

23andMe,agenetictestingcompanycofoundedby

Sergey’swife,Anne;numbertwowastheTeslagreen

sportscar;andforty-ninthwasNanosolar,asolarenergy

companyproducingathin,lightweight,affordablesolar

panel.LarryandSergeywereearlyinvestorsinallthree

companies,andGoogleitselfhasinvestedin23andMe.

Thefourth-rankedgreatinventionof2008wasGoogle’s

ownidea,wind-poweredcomputerdatacenters.

Googlehasthousandsofengineersworkingoninno-

vativeapplicationsfor

Internetandmobileuse.Theyalso

arecollaboratingwiththeNationalAeronauticsand

SpaceAdministration(NASA)tobuildahigh-technology

campusatMoffettFieldnearGoogleheadquarters.

Undera40-yearagreement,

Googlewilllease42.2acres

ofbarelandfromNASAtoconstructupto1.2million

squarefeetofofficesandresearchanddevelopment

(R&D)facilities.7

GoogleandNASAhavebeguncollaborationonsev-

eralprojects,includingone

thatmakesiteasierforthe

scientiststopublishplanetarydataontheInternet.The

projecthasalreadyprovidedhigh

-resolutionlunar

imageryandmapstotheGoogleMoonprogramand

cintro.indd7

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8

GOOGLESPEAKS

resultedinthe“NASA”layerinGoogleEarth.Similarly,

theGlobalConnectionprojectenhancesthe“

National

Geographic”layerinGoogleEarthbyembeddinggeo-

referencedstoriesandimagesfromaroundtheworld.

TheDisasterResponseprojectdevelopsprototypesoft-

waretoolstohelpimprovefirstresponsetolarge-scale

naturaldisasters.

EventhePentagonsoughtGoogle’sadviceonhow

bettertomanageinformationtechnology.8

Thefoundersthemselvesaregenerallyconsideredto

begoodguys,well-intentionedanddoingtheirbest.In

theirbachelordaystheyengagedinwhatseemslike

innocentfun.OnephotoonthewebshowsSergeyata

fraternitypartydressedasagirl.9

Googleisanimpressiveintroductiontothetwenty-

firstcentury.ByloggingontoGoogle.comoroneofits

numerousotherdomains,youcanlocateinformationin

dozensoflanguages,checkreal-timestockprices,find

phonebooksforeveryU.S.city,getdirectionstoyour

doctor’soffice,orevencheckoutanaerialorstreetview

ofyourownhouse.

Thiscompanytakesusrightintotheborderlessglobal

society.Airplanesandtelephonesmovedusinthatdirec-

tion;computersarespeedingusevercloser.It’salsoa

societythatpushesforchange,sometimesrecklessly.

cintro.indd8

3/25/093:00:34PM

Introduction9

Nevertheless,changeisinevitable,andGoogleisforcing

governmentstocomeupwithnewequitableguidelines

andrulesfortheInternet

milieu.

Googlehasamysteriousmojothatisn

’teasyto

explain.Eachofthe2008U.S.presidentialcandidates

troopedtoMountainViewtomeetwithGoogleand

Googleemployees.Andrew

Orlowski,executiveeditor

ofthetechnologywebsite,TheRegister,claims,“The

Webisasecularreligionatthemomentandpoliticians

gotoprayateventsliketheGoogleZeitgeistconfer-

ence.Anypoliticianwhowantstobrandhimselfasa

forward-lookingpersonwillgethimselfphotographed

withtheGoogleboys.”10

Googlesetoffabuzzatboththe2008Republicanand

Democratnationalconventions.Thecompanyspon-

soredcentersforbloggerstoreportontheirobservations

andinsightsatbothmeetings.AttheDemocraticcon-

ventioninDenver,Colorado,thebloggers’headquarters

wasatwo-story,8,000-square-footfacility.Republicans

hadasimilarsetupinSt.Paul,andmorethan200blog-

gersregisteredforcredentialsthere.Forthefirsttime

sincetheAmericanRevolution,thepotentialexistedfor

nontraditional,oftennonprofessional,reporterstocon-

trolbreakingpoliticalnews.11

Google’schiefexecutiveoffi

cer,EricSchmidt,

becameanadvisortoPresidentBarackObama’stransi-

tionteam,helpingtochoosecabinetmembersforthe

cintro.indd9

3/25/093:00:35PM

10

GOOGLESPEAKS

economyandtechnology.Additionally,thecompanyhas

useditshugeprofitsandinfluencetolobbyCongress

foradvantageousregulatory

changesandtocompetein

newfields,includingsoftware,wirelesscommunica-

tions,andalternativeenergysources.

Google’spositiveimagebegantoshiftasthecom-

panygrew.Atfirst,Googlewasthemiracleofthe

twenty-firstcentury;now,graduallyit’sbeginningtobe

seenasamenace.In2004,Wiredmagazineplastered

picturesofSergeyandLarryonitscoverabovethetitle

“Googlemania.”Twoyearslater,itrananotherstory,

headlined“Googlephobia:

Who’sAfraidofSergey?(Who

Isn’t?).”

Asforthisquickswitchinattitudes,“Ifinditsurpris-

ing,”saidSergey.12

Nevertheless,evenasthenegativenoisegrew,

Googlecustomersatisfaction

remainedhigh.Onerat-

ingservicegaveGoogleascoreof86outofapossible

100.ApplescoredonepointbelowGoogle.Bycompari-

son,manyU.S.airlinesrankedsomewherebetween54

and62.13

Amongthequestionsaskedinthisbookare:

•Whatdoesitmeanwhenasinglecompanybecomes

ourprimaryportaltotheentireWorldWideWeb?

cintro.indd10

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Introduction11

Almostovernight,Internetsearchbecamethemost

importanttoolforfindingandprocessinginformation.

Googlehasbeenextremelycleverinfindingnew

waysandnewinformationtosearch.Italsohasgone

beyondsearchwithaWebbrowser,e-mailandother

services.

•Shouldindividualsbeconcernedabouttheir

privacyinrelationtoGoogleorothersearch

engines?Whatstepscanpeopletaketoprotect

themselves?

•Whoownsintellectual

property,andwhoisentitled

tousethemusic,books,art,andothercreationsto

earnmoney?

•HasGooglebecometoopowerful?

•Whatliesaheadforthecompanyasitmatures?

Googleisjustoveradecade

old,afterall.Larryand

Sergeyalwaysneedtobelookingbehindthem,

readyforthenextyouthfulentrepreneurswhomay

begainingonthem.

Herearesometipsforgettingthemostoutofthisbook.

RememberthatGooglecomesoutwithadvances,new

products,andideaswithsuchspeedthatit

’salmost

impossibletokeepup.Forthatreason,thisbookfocuses

somewhatmoreonthecompanyandthe

personalities

whocreatedandrunGooglethanitstechnology.

cintro.indd11

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12

GOOGLESPEAKS

Thebookislargelybasedon

thewordsofLarryPage,

SergeyBrin,EricSchmidt,andothersatGoogle.I’ve

alsoincludedcommentsofthosewhofollowthecom-

panyclosely.Thusthetitle:GoogleSpeaks.

TokeeptrackoftheevolutionofeventsatGoogle,

turntothetimelineatthebackofthebook.Tobetter

understandtheuniquelanguageoftheInternet,referto

theglossary.

Finally,enjoythebook.ThesagaofGoogleisoneof

themostremarkablebusinesstalesevertold.Google

hasalottotellus.

cintro.indd12

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TheGoogle

Guys

SERGEYBRIN

“Sergeywasagoodboy,”hisfatherjoked,“whenhe

wasasleep.”1

RussianRoots

SergeyMikhailovichBrinisthesonofaUniversityof

Marylandappliedprobabilityandstatisticsprofessor

(hisdad)andaNASAscientist(hismom).Hewasborn

inMoscow,Russia,onAugust21,1973.Sergey’sparents

fledtotheUnitedStateswhenhewas6yearsold,and

bythetimehewas21hewasonhiswaytobecominga

multiculturalmarvel.

13

c01.indd13

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14

GOOGLESPEAKS

InMoscow,thefamily,includingtheparentsand

Sergey’sgrandmother,livedinacrowded350-square-

footapartment.Sergey’stoddlerplaygroundwasagrim

courtyard,wheretheboyspenttwohoursadayplaying,

regardlessofhowcoldtheweather.2Additionally,the

familymetwithanti

-Semitisminthestreetsand

in

theworkplace.Theoutlookwassodiscouragingthatthe

familyknewtheymustleave.

WhenSergeywas17,theyreturnedtoRussiaforavisit,

despitetheirnervousnessatthereceptiontheymight

receive.AfterSergeysawthe

crumblinginfrastructure

andbleakatmosphereofhisnativeMoscow,hefeltgrate-

fulthathisparentshadimmigrated.3

“Ithink,ifanything,IfeellikeIhavegottenagiftby

beingintheStatesratherthangrowingupinRussia...

itjustmakesmeappreciatemylifethatmuchmore.”4

AmericanPassage

Thefamily,includingparents,grandmother,andyoung

Sergey,landedinAmericaonOctober25,1979.Withthe

helpoftheJewishcommunitythatsponsored

them,

MichaelandEugeniaBrinfoundworksuitabletotheir

educationandsettledintoanewlifeinMaryland,just

ontheperimeterofWashington,D.C.

TheBrinshadnotlivedaparticularlyJewish-centered

lifeinRussia.“WefeltourJewishnessindifferentways,”

explainedMichael,

“notbykeepingkosherorgoing

tosynagogue.Itisgenetic.Wewerenotveryreligious.

c01.indd14

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TheGoogleGuys15

MywifedoesnoteatonYomKippur.Ido.Wealways

haveaPassoverdinner.WehaveaSeder.Ihavethe

recipeforgefiltefishfrommygrandmother.”5

EducatingSergey

Forawhile,youngSergeyattendedtheMiskanTorah

HebrewSchool,buthedidn’tlikeitandafterafewyears

stoppedgoing.

SergeywasenrolledinthePaintBranchMontessori

SchoolinAdelphi,Maryland.HespokeEnglishwitha

heavyaccentwhenheenteredtheschool.Hedidn’tpick

uplanguageasquicklyasthefamilyhoped,butthe

bright-eyed,shyboydidadjust.HisMontessoriteacher,

PattyBarshay,recalls,“Sergeywasn’taparticularlyout-

goingchild,buthealwayshadtheself-confidenceto

pursuewhathehadhismindon.”6

HisfathergavehimaCommodore64computerwhen

Sergeywas9.Bymiddleschool,Sergeywasrecognized

asamathprodigy.HewentontoEleanorRooseveltHigh

SchoolinGreenbelt,Maryland,where,accordingto

someaccounts,hewascockyabouthismathskills,often

challengingteachersontheirmethodsandresults.

“Ididn

’tsystematicallyteachSergey;hewouldask

whenhewantedtoknowsomething,”hisfatherrecalled.7

TheRoadtoStanford

YoumightsaySergeywenttohighschool,college,and

graduateschoolattheUniversityofMaryland.He

began

c01.indd15

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16

GOOGLESPEAKS

studyingmathatthecollegewhenhewas15,andquit

highschoolaltogetherafter

hisjunioryeartoenrollfull

timeandgraduatedinthreeyears.

AfterwinningaNationalScienceFoundationschol-

arship,Sergeyappliedtoseveralgraduateschools.

BeingrejectedbyMITwasn’tsuchadisappointment,

sincehehadhisheartsetongoingtoCaliforniato

attendStanford.Thatschoolappealedtohimbecauseof

itsproximitytoSiliconValleyandthenearbyarmyof

supportivehigh

-techentrepreneurs.Sergeyheaded

westtoearnhisPh.D.

Healsowelcomedtheprospectofgreatweather.In

California,Sergeyeasilytooktocampussociallife,

includingskiing,rollerblading,andgymnastics.

Whenhisfatheraskedwhetherhewastakingany

advancedclasses,Sergeyreplied,

“Yes,advanced

swimming.”8

RajeevMotwani,oneofSergey

’sadvisors,remem-

bers,“Hewasabrashyoungman.Buthewassosmart.

Itjustoozedoutofhim.”9

(Note:ThereismoreonBrin’sStanfordexperiencein

thesection“ForgingtheStanfordConnection.”)

BoyGeniustoAdultGenius

Asanadult,Sergeyisrestlessandedgy.Hisboyishgood

looksandlow,slopingshouldersmakehimseemper-

petuallyrelaxed.Heisactive,studyingtheflyingtra-

pezeatacircusschoolinSanFrancisco(exceptthathe

c01.indd16

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TheGoogleGuys17

fellandhurthisback)andpracticingspringboarddiv-

ing.Hispuckishsenseofhumoroftengrabspeopleoff

guard,andattimesevencomesacrossasjuvenile.Nev-

ertheless,hisLevi’s,fadedt-shirt,andcrocswithsocks

orrollerbladesareacoverforapurposeful,serious,

evenaggressivepersonality.BothSergeyandLarryare

notoriousworkaholics.

SergeystillspeakswithaslightRussianaccentandends

manysentenceswith“andwhatnot.”LikeEric

Schmidt

andLarryPage,heoverusesthewordscale.Often,scale

describessomethingthatremainsworkableasitgrows

bigger,butinGooglespeak,ithascometomeansome-

thingthatcanbedevelopedintoaprofitableproduct.

WeddingonaCaribbeanSandBar

ItseemedcuriousthatSergeymissedGoogle

’s2007

Annualmeeting,butthen,thestorycameoutthatmay

haveexplainedit.Hewasgettingmarried.

Sergey’smotheronceexpressedthehopethathe

wouldweda“niceJewishgirl,”andherwishcametrue.

HemarriedAnneWojcickiinMay2007,intheBaha-

mas.Anne’sgreat-grandfatheronhermother’ssidewas

aprominentRussianrabbiwhocametotheUnited

Statesinthe1920s.

Withthebridewearingawhitebathingsuitandthe

groomwearingablackone,Brinandhislongtimegirl-

friendswamtoasandbar,whereafriendperformedthe

nuptials.

c01.indd17

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18

GOOGLESPEAKS

Anne,aformerhealth-careanalystturnedentrepre-

neur,isthesisterofearly

GoogleexecutiveSusan

Wojcicki.ThesistersgrewupinPaloAlto,wheretheir

fatheristheheadofthephysicsdepartmentatStanford.

Theirmotherisarespectedjournalismteacheracross

thestreetatPaloAltoHighSchool.AnneattendedYale

University,graduatingin1996withadegreeinbiology.

LikeSergey,sheishigh-energyandathletic.Shewasa

memberofhercollegeicehockeyteamandacompeti-

tiveiceskater.

SergeyandAnnebecame

parentsforthefirsttimein

thewinterof2008withthearrivalofsonBenji.

23andMe

Googleput

$3.9millionintoAnneWojcicki

’sbiotech

startup,23andMe.Thecompanyisbuiltontheconcept

ofindividualizedgeneticmapping.Itsnamerefersto

thenumberofpairedchromosomesinhumanDNA.

Anne’scompanycantellyouaboutyourgeneticorigins,

yourpropensityorresistancetocertaindiseases,and

scoresofotherintimatedetails.

Aftersubmittingtogenetictestingby23andMe,Brin

learnedthathehasapropensityforParkinson’sdisease,

aconditionthataffectshis

mother.Inhisblog,Sergey

wrote:

Thisleavesmeinaratheruniqueposition.Inow

havetheopportunitytoadjustmylifetoreducethose

c01.indd18

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TheGoogleGuys19

odds.Ialsohavetheopportunitytoperformand

supportresearchintothediseaselongbeforeitmay

affectme.

Headded,“Ifeelfortunatetobeinthisposition.”10

Untilthefountainofyouthis

discovered,allofuswill

havesomeconditionsinouroldage,onlywedon’t

knowwhattheywillbe.Ihaveabetterguessthan

almostanyoneelseforwhatillsmaybemineandI

havedecadestoprepareforit.11

Brin,alongwithhisparents,contributed$1.5million

totheUniversityofMaryland

’sParkinson

’sdisease

researchproject.

12Andhealsoisinvolvedwiththe

MichaelJ.FoxFoundation.

AnneBrinappearedontheOprahWinfreyshowand

talkedaboutherpregnancyandthebaby.“Ilookedat

Sergey’sprofileandIlookedatme,andwesawthatthe

childhasafiftypercent[chanceofbeing]lactose

intol-

erant.BecauseofSergey,thechildhasavery,very

unlikelychanceofhavingblueeyes.”13

WarrenBuffettdida23andMeDNAtestwithmusi-

cianJimmyBuffetttoresolvethelong-standing

ques-

tionofwhethertheywererelatedornot.“Thereport

camebackanditsaidifyoudon’tunderstandtheresults,

giveusacall.IdidcallandgotAnneonthephone.She

explaineditagainandaskedifIunderstooditnow.

c01.indd19

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20

GOOGLESPEAKS

Ireallydidn’t.Shefinallysaid,‘Let’sputitthisway.I’mmorecloselyrelatedtoJimmyBuffettthanyouare.’”14

FlyingHigh

SergeyBrin’smothermarvelsattheheightofherson’s

success.“It’smind-boggling,”saysEugenia.“It’shardto

comprehend,really.Hewasaverycapablechildin

mathandcomputers,butwe

couldneverimagine

this.”15

Whenaskedhowitfelttohavesuddenvastwealth,

Brinsaid,“Ittakesalotofgettingusedto.Youalways

hearthephrase,moneydoesn

’tbuyyouhappiness.

ButIalwaysinthebackofmymindfiguredalotof

moneywillbuyyoualittlebitofhappiness.Butit’snot

reallytrue.Igotanewcarbecausetheoldone’slease

expired.Nothingterriblyfancy

—youcoulddrivethe

samecar.”16

Hassuccessandwealthchangedhim?“Idon’tthinkat

acertainscaleitmatters,”saidSergey,“butIdohavea

prettygoodtoybudgetnow.Ijustgotanewmonitor.”17

Sergeyalsoboughtapriceynewhomeonthe

peninsulasouthofSanFranciscoandaNewYorkapart-

ment,buthestilliscarefulwithpersonalmoney.“From

myparentsIlearnedtobefrugalandtobehappywith-

outmanythings.”18

c01.indd20

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TheGoogleGuys21

HelikestoshopatCostcowarehousestores,where

heboughthisparentsamembership.

“It’sastore

thatheknowsandunderstands,

”explainedSergey

’s

father.19Luckily,thereisaCostcoverynearGoogle

headquarters.

LarryPage,theintellectualoftheGoogleguys,seeks

explorationofspacethroughhisinvolvementinthe

GoogleLunarX

-PrizeandbyservingontheX

-Prize

board.However,Sergey,thetrapezeartist,divesright

in.RecentlyhetraveledtoKazakhstantovisitthe

BaikonurCosmodromefora

minispacevacation.Brin

haspaid

$5milliontotravelintoactualspace.He

’ll

makethetripin2011withSpaceAdventures,acom-

panythatstruckadealwiththeRussianspaceagencyto

launchthefirstentirelyprivateflightintospace.Brin

willgetoneofthetwoseatsavailableonthatmission.

LARRYPAGE

WhileSergeyBrin

’sisanimmigrant

’sstory,Larry

Page,severalgenerationsawayfromtheimmigrant

experience,wasinmostwaysthetypicalAmericanboy

ofhisgeneration.Evenso,aswithSergey,theseeds

wereplantedearlyforhimtopullthePrinceArthur

swordfromthestoneoftechnology.Although

perhaps

c01.indd21

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22

GOOGLESPEAKS

notconsciouslyonthepartoftheirparents,theyboth

weregroomedfrom

childhoodforthejourneythey

wouldtake.Theirdestinyevolvedfromtheirorigins.

Likehispartner,SergeyBrin,Larrycomesfrom

Jewishheritage.Page

’smaternalgrandfatherimmi-

gratedtoIsrael,wherehelivedinadeserttownnear

theDeadSea,andworkedasatool

-and-diemaker.

Larry’smotherwasraisedintheJewishfaith,buthis

fatherwastooscientificformuchreligion.Hisfocus

wasontheworldoftechnology.

CradledinaComputerCulture

Page’sgrandfatherwasaDetroitfactoryworker,buthis

grandsonhashadafardifferentlife.LawrenceEdward

PagegrewupinLansing,Michigan,surroundedby

math,science,andcomputers.Hisfatherwasahighly

regardedprofessoratMichiganState,wherehismother

alsotaughtcomputerprogramming.Hisparentsdi-

vorcedwhenLarrywas8yearsold.Nevertheless,the

boygrewupwithbothparentsinhislife.Larry’sfun-

lovingfathertookhimtoGratefulDeadconcertsas

achild.

Pageexplained,“mydadwasacomputerscience

professor,sowehadcomputersreallyearly.Thefirst

computerweownedasafamilywasin1978[Larry

wouldhavebeen5yearsold],theExidySorcerer.It

waspopularinEuropebutneverintheU.S.Ithad

c01.indd22

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TheGoogleGuys23

32Kmemory.Mybrotherhadtowritetheoperating

system.”20

Larryinheritedatleastoneofhisfather’straits—the

tendencytohavespiriteddiscussionsabouteverything.

“Insomeways[Carl]wasalittlehardtodealwith,”said

GeorgeStockman,oneofProfessorPage’scolleagues

atMichiganState,“becausehewantedtoargueabout

everythingandhedid,and...[he]sharedalotofthat

withhisson.Sointellectuallytheysharedinalotof

discussion.”21

NikolaTesla,Page’sHero

Twelve-year-oldLarryPage,anaspiringinventor,read

abiographyofNikolaTesla,anditgothimtothinking.

Theboyadmiredthephenomenalnumberofinnova-

tionscreditedtoTeslabutwasstruckbythefactthat

Teslaledalifefraughtwithconflict,wasbadwith

money,diedinpoverty,andwaslittle

-knownoutside

scientificcircles.Certainly,schoolchildrendon’tstudy

TeslathewaytheydoThomasEdison.

Consideredthefatherofmodernphysicsandelectri-

calengineering,Teslainventedalternatingcurrent(AC)

powerandtheACmotor.Hepioneeredmanyscientific

advancesincludingrobotics,

remotecontrol,radar,and

computerscience.AlthoughMarconiclaimedit,Tesla

waseventuallyrecognizedastheinventoroftheradio.

Hisworkableinventionsaside,Teslaoftenwasregarded

c01.indd23

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24

GOOGLESPEAKS

asamadscientist,thankstohisbehaviorandaraftof

wildideas.Teslaalsohaddifficultycommercializingor

findingpractical

applicationsforhisideasandinven-

tionsandthereforedidnotseemtoaccomplishasmuch

ashemighthave.

Pagedreamedofbeingascreativeanddoingsuch

greatthings,andhewantedhisworktomakeadiffer-

enceandchangetheworld.SincesomeofTesla’sinven-

tionsdidchangetheworld,itwouldalsoseemthateven

at12yearsofage,Pagealsowasaimingforrecognition

andfinancialreward.

TESLA’SSTORY

In1856,NikolaTesla,accordingtolegend,wasborn

exactlyatmidnightduringaragingelectricstorm,which

mayormaynotexplainhistroubledlifeandhisfascina-

tionwithanythingthatsparked.

Tesla,aCroatian,studiedin

severalrespectedEastern

Europeanuniversities,but,despitehisgenius,never

graduated.Heexperiencedanervousbreakdowninearly

lifebutneverthelessfoundworkintheemergingelectri-

calpowerindustry.WhenheimmigratedtotheUnited

States,hewenttoworkforThomasEdison,butleftEdi-

sonafteranargumentoverwages.Soon,Teslawasoff

doinghisownresearchandworkingoninventionsin

NewYorkandColoradoSprings.TheappealofColorado

c01.indd24

3/25/092:48:43PM

TheGoogleGuys25

wasthewonderfulelectricstormsoftheRockyMoun-

tains.VisitorstoTesla’slaboratoriesoftenfoundhimat

work,surroundedbyman-madelightning.AlthoughTesla

assuredthemthelightningboltswereharmless,thesight

terrifiedthevisitors.

Certainly,Teslawasquirky,mostlikelysufferingfrom

anobsessive

-compulsivedisorder.Hewasfanatically

clean,hadanaversionto

overweightpeople,andbecame

obsessedwiththenumberthree.Heoftencircledthe

blockthreetimesbeforeenteringabuilding,demanded

threenapkinsatmeals,andwouldnotstayinahotel

unlesstheroomwasdivisible

bythenumberthree.

Teslamayhavesufferedfromarareneurologicalcon-

ditioncalledsynesthesia,inwhichonetypeofstimulation

evokesthesensationofanother.Forexample,hearinga

soundorthinkingofa

numbermayproducethevisuali-

zationofacolor.

Theinventordiedaloneandpennilessatage86in

room3327oftheNewYorkerHotel.

TheTeslaCar

Despitehistragicstory,

Teslahasmanyadmirers,one

ofwhomnamedanüber-chic$109,000electricsports

carafterhim.

Thelimitedrunofhand-builtTeslaswilltravelupto

130milesperhouranddo0-to-60inaboutfourseconds.

c01.indd25

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26

GOOGLESPEAKS

TheTeslaalsocango250milesonasinglechargeof

electricitytoitsnearlysilentmotor.Thecarispowered

byaninnovativelithium-ionbatteryandcostsapenny

a

miletodrive.

Thecar’sdeveloperschosetobuildasportsversion

becausetheyknewthefirstgenerationoftheircar

wouldbeexpensive,duetodevelopmentcosts.They

alsorealizedthatmanyof

SiliconValley’sbillionaires

payhomagetogreentechnologyandsimpleliving,but

alsohaveayenforfastcars.TheyhaveCorvettes,

Porsches,andothercostlysportscarstuckedawayin

thefive-cargarage.Theyfiguredawhiz-bangelectric

modelwouldhaveappeal.

Duringtheeconomiccrisisof2008,TeslaMotorsran

intofinancialtroubleandhashadtocutbackdrasti-

cally.Butthanksto$40millionfromanangelinvestor,

ithasbeenabletocarryon.Bytheendof2008,Tesla

hadordersformorethan1,200cars,andhaddelivered

50roadsters.Itwasshippingtencarsaweek.

BothLarryandSergeyhaveorderedtheTesla,as

haveactorGeorgeClooneyandCaliforniaGovernor

ArnoldSchwarzenegger.

MotivatedbyMontessori

LikeSergey,LarryattendedaMontessorielementary

school,wherehewasexposedtoaneducationalmethod

developedbyanItalianphysician,MariaMontessori,22in

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TheGoogleGuys27

theearly1920s.Herideasquicklyspreadaroundthe

world.Montessorioncewrote:“Thereisapartofachild’s

soulthathasalwaysbeenunknownbutwhichmustbe

known.Withaspiritofsacrificeandenthusiasmwemust

goinsearch,likethosewhotraveltoforeignlandsand

tearupmountainsintheirsearchforhiddengold.”23

Montessoribelievedthatchildrenwantedtolearn

andthatdevelopmentcame

instageswitheachchild.

Playingwaschildren’swork,andbydirectedplay,chil-

drenmovedalongwiththeirphasesofdevelopment

intodeeplearning.Asaresult,childrenoftenbecamemore

self-managing,responsible,

andcommittedtolifelong

learning.Certainly,hermethodsseemedtohaveshaped

bothSergeyandLarry.

“Wedonotwantchildrenwhosimplyobeyandare

therewithoutinterest,”shetaught,“butwewanttohelp

themintheirmentalandemotionalgrowth.Therefore,

weshouldnottrytogivesmallideas,butgreatones,so

thattheynotonlyreceivethembutaskformore.”24

TheLeadershipProgram

Later,LarryPagegraduatedfromEastLansingHigh

School,whereheplayedthesaxophone.Hewentonto

graduatewithhonorsandadegreeincomputerengi-

neeringfromtheUniversityofMichigan.AtUM,he

servedatermaspresidentofEtaKappaNu,theNational

HonorSocietyforelectricalandcomputerengineering

c01.indd27

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28

GOOGLESPEAKS

students.There,andinanotherspecialprogram,he

begandevelopingleadershipskills.

“Inparticular,”hesaid,“theLeaderShapeprogram

wasanamazingexperiencethathelpedmealotwhen

westartedGoogle.

”25LeaderShapeisaUMpersonal

developmentprogramthatoriginatedintheearly1990s

intheCollegeofEngineering.

TheSolarRacer

ItalsowasattheUniversityofMichiganthatLarryfol-

lowedhisinterestinalternativeformsofenergy.Asa

memberoftheschool’ssolarcarteam,hetookpart

in

theearlyphaseofbuildingthechampion1993Maize&

Bluesolarcar.

TheUMsolarcarranintworaces,winninganational

championshipinSunrayce93,thepredecessorraceto

theNorthAmericanSolar

Challenge.Itthenwenton

tofinisheleventhinthe1993WorldSolarChallenge.

Maize&Blueisnowpartofthepermanentdisplayatthe

MuseumofScienceandIndustryinChicago.Thecar

hadanevolutionarydesigndescendedfromtheGeneral

MotorsSunraycerandtheUniversityofMichigan’sfirst-

generationcar,Sunrunner.Itisconsideredanearly

demonstrationofenergy-efficientautomobiledesign.

GoWest,Larry

Afterearninghisundergraduatedegree,Larry

headed

forStanfordUniversity.However,havingspenthisentire

c01.indd28

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TheGoogleGuys29

lifeinthefamiliarenvironmentaround

Michigan,heset

outtoCaliforniawithsometrepidation.“Atfirstitwas

prettyscary,”hesaid.“Ikeptcomplainingtomyfriends

thatIwasgoingtogetsenthomeonthebus.Itdidn’t

quitehappenthatway,however.”26

TragedystruckduringLarry’sfirstyearatStanford.

HisfatherCarl,asurvivorofchildhoodpolio,diedfrom

complicationsofpneumoniaatage58.

“IrememberLarrysittingonthestepsoftheGates

Buildingandhewasverydepressed,”saidSean

Anderson,

agrad

-schoolofficemateofLarry.

“Anumberofhis

friendswerearoundtryingtocomforthim.”27

Fortunately,hehadfamily.Larry’sbrotherCarlwas

livinginSiliconValleyaswell.Larryremainscloseto

hismotherandbrother.Thethreeofthemparticipated

inapeacemarchinOregon,protestingtheIraqwar.28

Lego-centricity

Asthelegendgoes,Larryoncebuiltaprogrammable

computerfromLegos.Pagehasalwayshadafascina-

tionwiththechildren

’sbuildingblocks,andGoogle

hasbecomeaLego-centriccompany.CraigSilverstein

recalledthatthecompanylearnedalessonaboutqual-

itycontrolearlyinitslife,thankstothedesiretobuild

ahard

-drivecaseoutofLegos.TheoriginalDanish

versionwasexpensive,andtosavemoneytheGoogle

teamwenttoadiscountstoreandboughtaknockoffof

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30

GOOGLESPEAKS

Legos.Sadly,thequalitywasn

’tthesame.Thecrew

cameinonemorningtofind

thattheirhard-drivecase

hadcrumbledintoaheapsometimeduringthenight.

Nevertheless,Larry’sloveofLegoscontinues.When

askedbyareporterwhathisfavoritetechnologywas,

hereplied,“ThethingI’mmostfondofisLegoMind-

storms.They’relittleLegokitsthathaveacomputer

builtin.They

’relikerobotswithsensors.I

’vebeen

doingsomeclassifiedthingswiththem.”29

MensaBoy

Astheengineerandmathematicianwhooverseesthe

writingofthecomplexalgorithmsandcomputerpro-

gramsatGoogle,Larryhasareputationasadeepthinker

andmajornerd.Whenhegavethekeynotespeechatthe

hugeLasVegasConsumerElectronicsShow,hebrought

RobinWilliamsonstagewithhim.Williamsmocked

Page,callinghim“Mensaboy.”Williamspilediton,say-

ing,

“Larry,doyourealizeyousoundjustlikeMister

Rogers?”30

LarryGetsMarried

“Thisistheweddingthateveryone’sbeentalkingabout

inSiliconValley,”proclaimedValleywageditor-in-chiefOwenThomas.31LarryPagewedLucindaSouthworth,

hislongtimegirlfriend,onDecember8,2007.They

weremarriedonNeckerIsland,RichardBranson

’s

Caribbeanretreat.NeckerIsland,onceafavoritespot

c01.indd30

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TheGoogleGuys31

ofPrincessDiana,providedappropriateprivacyand

security.Andnowonder—roomstherestartat$50,000

perweekandcanclimbto$300,000perweek.

Southworth,aprettyblonde,achievedsomething

Pageaspiredtobutdidnotaccomplish—sheearnedher

Ph.D.LucystudiedbiomedicalinformaticsatStanford

UniversityaftergraduatingfromtheUniversityofPenn-

sylvaniaandearningamasterofsciencefromOxford

University.Additionally,she

hasdonemedicalsocial

workinSouthAfrica.

TheX-Prize

OneAprilFool’sDay,Googleannouncedplanstoopen

Googlunaplex,aresearchfacilityonthemoon.Itsounded

likeajoke,butwasit?BothoftheGooglefoundersexhibit

anunnaturalinterestinworldsbeyondourown.Atthe

StarTrekFortiethAnniversaryconventioninLasVegas,

Googlesetupaboothfeaturingtoolssuitablefor

interga-

lacticuse.

Yes,Googlunaplexwasallinfun,butLarryand

Sergeygetseriousaboutthesubjectofouterspace.

UsingGoogle’sSkysoftware,foundwithinGoogleEarth,

Websurferscanviewstarsandconstellationsandtake

avirtualtourofthegalaxies.

PageservesontheboardofdirectorsoftheX-Prize

FoundationandisthecorporatespiritbehindtheGoogle

LunarX-Prize,a$20millionrewardtothefirst

company

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32

GOOGLESPEAKS

todevelopasuccessfulmoon-exploringrobot.Atleast

tenteamsfromaroundthe

globehavesignedupto

competeinthenongovernmentalracetothemoon.

Theteamthatcollectsthegrandprizemustsoftland

aprivatelyfundedroboticspacecraftonthemoonby

December31,2012.Therobotmustbeabletorove

500

metersandbeamspecificvideo,images,anddataback

toEarth.

Larryseesallsortsofadvantagesofhavingaperma-

nentbaseonthemoon,rangingfromsolvingsomeof

Earth’senergyproblemstoservingasalaunchingpad

formoredistantexplorationoftheuniverse.

RaminKhadem,chairmanofoneofthecompetitors,

OdysseyMoon,explainswhythecompetitiontogetafoot-

holdonthemoon—again—issoexciting.“Themoonis

the

eighthcontinentandweneedtoexploititinaresponsible

way.WewanttowintheGoogleprizeand,ifwedo,that

willbegravy.Buteitherwaywearegoingtothemoon.”32

TheX-PrizeFoundation

offersseveralotherawards

forgroundbreakingworkthatwillbenefithumanity

withanemphasisonscientificendeavors.Inadditionto

thespaceprizes,thereisoneforautomotiveadvances

andgenomics.

NoMoreLaundry

Whenaskedhowsuccessandwealthhadchangedhis

life,Pagereplied,“Idon’thavetodothelaundry.”33

c01.indd32

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TheGoogleGuys33

Laundrymaybeanimportantissue.Thestorygoes

thatonthemorningGooglewentpublic,Larryshowed

upforwork,uncharacteristically,inasuitandtie.

AccordingtoGQmagazine,hesomehowsatinaplate-

fulofcrèmefraiche.SympatheticGooglershelpedhim

removethemessfromtherearofhispants.34

THEPOWEROFPARTNERSHIP

WhenLarrytraveledtoStanfordforanorientationvisit

inthespringof1995,Sergeyalreadywasasecond-year

student.Theymetona

walkingtourofthecampus

guidedbySergey,andasthestorygoes,sparks

flew.Apparently,theyarguedabouteverytopictheydis-

cussed,whichisnotsurprising,consideringtheir

matchinglevelsofself

-confidenceandLarry

’sfamily

historyofconfrontationaldebate.Eachyoungmancon-

sideredtheothersomewhatarrogantandobnoxious,

yetthecontentiousconversationalsowasengaging.It

clearlywasinterestingtobothofthem.

Despitetheirverbaldifferences,LarryandSergey

walkedoncommonground.WhileSergeyisan

extrovertandLarryisquieter,theybothareplayfuland

alittlewacky.Theylookso

muchaliketheycouldbe

brothers,althoughSergeymoreresemblesthecharac-

terLinguiniinthePixarmovie,Ratatouille,thanLarry

does.Bothmenaresonsofcollegeprofessors,they

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34

GOOGLESPEAKS

shareaJewishheritage,andbothreceivedaMontes-

soriSchooleducationaschildren.

Theyeachhaveonesibling,bothbrothers,although

Sergey’sbrotherisyoungerandLarry’sisolder.Carl

PageJr.alsoisasuccessfulSiliconValleyentrepreneur.

In2000,hesoldthecompanyhefounded,eGroups,to

Yahoo!for$432million.

BothLarryandSergeyaremathwhizzeswithatow-

eringregardforacademicachievement.

Sergeyadmitshemostlygoofedoffduringmuchof

hiseducation.“Itriedsomanydifferentthingsingrade

school,”hesaid.

“Themoreyoustumblearoundthe

morelikelyyouaretostumbleacrosssomethingvalua-

ble.”35Sergeyfollowedthiswanderingpathuntilhemet

Larry.Page,itseems,didn’twastemuchtimegettingto

workonhisgraduateproject.

AfterLarryarrivedatStanfordandconferredwith

his

advisor,hebegandevelopingaprojectcalled

“Back-

Rub,”namedforitsprocessofanalyzingbacklinkstoa

website.SoonSergeywasworkingwithhimonthe

projectoutofRoom360of

theWilliamGatesComputer

Sciencebuilding.

Theywerefollowingthetraditionoftheirindustry,

theroadfromprincestokings—thatofpartneringup

twoamazingbrainsonasingleproject.First,therewas

HewlettandPackard,andthenBillGatesandPaulAllen

formedaschooldays’alliancethatcontinuedforyears

c01.indd34

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TheGoogleGuys35

andchangedthewaytheworldworks.SteveJobsand

SteveWozniakfollowedatApple.Ithappenedagainat

Yahoo!withJerryYangandDavidFilo.

LarryandSergeyseemedtosensethenobilityintheir

relationship,theirsimilarbrainpower,thesameideals,

andthegrit.Withthiskindofmagic,allLarryandSergey

hadtodowasworkhardandmakegooddecisionsalong

theway,andsuccesswasinevitable.

Okay,thissoundstooeasy,andinfact,fewtherebe

whocanpullitoffatthelevelSergeyandLarrywere

ableto.Italsotakesimaginationandanexcellentidea.

ForgingtheStanfordConnection

Gates360,theStanfordgraduatestudentofficeshared

byLarryPageandSergeyBrin,haspracticallybecome

acomputerscienceshrine.Itisthebirthplaceofdreams,

especiallythedreamssharedbyyoungpeopleexcited

bycomputers,innovation,andgettingrichbylaunching

alollapaloozaofacompany.

ACreativeEnvironment

Nearlyalloftheoriginal

searchsoftwareandmethods

originatedatuniversities.CarnegieMellon,theUniver-

sityofNevada,andtheUniversityofCaliforniaat

Berkeleywereearlydevelopmentcenters.

ButStanfordUniversity,inextricablylinkedtothe

scientificaccomplishmentsofSiliconValleyandfueled

bytheventurecapitalcommunityonnearbySandHill

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36

GOOGLESPEAKS

Road,PaloAlto,hasbeenthemostfertilehigh

-tech

incubatoranywhere.Hewlett

-Packard,Excite,Cisco

Systems,Yahoo!,andSunMicrosystems(

SUNstands

for

StanfordUniversityNetwork)andmanyother

companies—includingGoogle—wereconceivedthere.

“Theecosystemweworkin,ourownnetworkisreally

important,”saysventurecapitalistRandyKomisar.

“Whereournetworkisstrongestisrightaroundusin

SiliconValley.Itisnotasurprisethatalotofcompanies

webackcomingoutofEurope,Israel,evencomingout

ofcountrieslikeIndia,endupwiththemanagement

teamscomingtoSiliconValleytobuildtheirbusinesses,

becausethatecosystemissoreinforcingtothem.”36

“Wewereveryluckytohavebeenthereintheearly

days,”rememberYahoo!foundersJerryYangandDavid

Filooftheearly1990s.“Itwasvirginterritory.There

wassomuchcreativity.Everytimesomeonedidsome-

thingnovel,itwasmonumental.”37

RajeevMatwani,oneoftheGoogleadvisorsatthe

universityandanangel

investorinvarioushigh-stakes

ventures,says,“IcreditStanfordforcreatinganenvi-

ronmentwherepeopleindifferentareascanworkwith

eachotheranddothingswherethewholeisgreater

thanthesumoftheparts.”38

Stanfordmakesiteasyforgraduatestudentstopursue

workthatcouldleadtoinnovationandtheformationofa

c01.indd36

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TheGoogleGuys37

newcompany.ItsOfficeof

TechnologyLicensingwill

payforthepatentprocess,thenenterintolong

-term

licensingagreementsthatletthebuddingscientists

launchtheirstartups,andwithluck,hitthejackpot.

StanfordPresidentJohnL.

Hennessysaysthatcom-

ingoutofschoolwithacompanyismoreproductive

thansimplywritingathesis:

WehaveanenvironmentatStanfordthatpromotes

entrepreneurshipandrisk-takingresearch.Youhave

thisenvironmentthatgets

peoplethinkingaboutways

tosolveproblemsthatareatthecuttingedge.Youhave

anenvironmentthatissupportiveoftakingthatout

intoindustry.Peoplereallyunderstandherethatsome-

timesthebiggestwaytodeliveraneffecttotheworldis

notbywritingapaperbutbytakingtechnologyyou

believeinandmakingsomethingofit.Weareanenvi-

ronmentwhereamilefromcampustheycantalkto

peoplewhofundthesecompaniesandhavelotsof

experiencedoingit.39

APoignantHistory

Stanfordwasfoundedin1891tohonorthememoryof

LelandStanfordJr.,thesonofrailroadmagnateand

CaliforniaGovernorLelandStanfordandhiswifeJane.

LelandJr.diedoftyphoidjustbeforehissixteenth

birthday.AmongthemembersofStanford’sfirstclass

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38

GOOGLESPEAKS

wasafuturepresident,youngHerbertHoover.Stanford

isatthetopofitsgameinanumberoffieldsofaca-

demicstudy,rangingfromjournalismtomedicine.

TheStanfordoftodayisvirtuallyacityonitsown.Its

sprawlingcampusreflectstheCalifornialandscapesur-

roundingit,withpalm,eucalyptus,andcypress

groves,

Mission-stylearchitecture,andred

-tiledroofs.The

campusisrichwithart,andstudentsblithelypedaltheir

bicyclesamongoneofthebestcollectionsofRodin

sculptureanywhere.Most

recentbuildingsseem

designedtofitin,buttheuniversity’sdiversityofpro-

gramsanditswealthhaveledtocertainexamplesof

morefunctionalandlessstylizedarchitecture.Never-

theless,itisaleading-edgeuniversity,andthecampus

jumpswithlife.

Clearly,Stanfordisaplacewherebrightyoungpeo-

plecanmakeconnectionsintheirownfieldthatlast

throughouttheircareers.Suchhasbeenthecasefor

SergeyandLarry.

Becausetheirparentstaught

inthefieldofcomput-

ersandscience,bothyoungmenhadspenttheirlives

inthissocialandpoliticalstructure.Theywerewell

awareoftheheadyacademicenvironmenttheywere

entering.Thiswaswherethelearnedsorcererswould

putthecrowningtouchontheirpreparationforthe

future.AttendingStanfordwasabigdealforboth

ofthem.

c01.indd38

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TheGoogleGuys39

AnAcademicoranEntrepreneur?

“IdecidedIwaseithergoingtobeaprofessororstarta

company....IwasreallyexcitedtogetintoStanford.

Therewasn’tanybetterplacetogoforthatkindofaspira-

tion.Ialwayswantedtogoto

SiliconValley.”40AtStanford,

LarrychoseashisadvisorthehighlyrespectedTerry

Winograd,anearlyexpertinhuman–computerinterac-

tion(HCI).Winogradisoneoftheforemostthinkersin

thefieldofsoftwaredesignandisespeciallyknownfor

hisworkonnaturallanguage.

Likemostcomputerengineers,Larrylovedgraphs.

HeviewedtheInternetasperhapsthelargestgraphever

created,andonethatwasgrowinglargerbythesecond.

HeandWinogradagreedthat

basedonthatconcept,he

shouldbeginexaminingthislinkstructureasapartof

hisgraduateproject.Pagefirstcalledhissearchsystem

“BackRub,”becauseitseemedthathewasforming

searchlinksthroughabackdoor.Between1996and

1998,studentsandfacultyincreasinglyusedthesearch

engine,anditbecameapparentthatthetechnologycould

bethebasisforacompany.(Thereismoreaboutthe

developmentofthecompanyinthesectionsahead.)

AGrimGoodbye

Perhapsthemostdifficultconsequenceofbuildinga

companyforbothBrinandPagewastheneedtodrop

outofgraduateschool.Bothofthemdreamedofearning

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GOOGLESPEAKS

aPh.D.,abadgeofhonorintheirfamilies.Atfirst,they

tookleavesofabsence,andfinallyhadtoemptyout

theirStanfordofficespace.In1999,withinitialfunding

inplace(includinga$25millionventurecapitalwar

chest),BrinandPagerealizedtheywouldbetoobusyto

continuetheirgraduatestudies.Winogradrecallsthe

day,ayearlater,whentheyfinallycleanedouttheir

office:“Theyhadthisgrimlookontheirface[s]because

theyhadtogotoStanford

withemptyboxes,andleave

withthemfull.”41

Sergey’sparentswerenothappywiththedevelopment,

either.“Weweredefinitelyupset,”saidhismother.“We

thoughtanyoneintheirrightmindoughttogetaPh.D.”42

NETWORKINGATITSBEST

Theyleftwiththeirloaded-upcardboardboxes,butthe

Googleguys’connectiontoStanfordhasneverended:

•StanfordwasgoodtoGoogleandGooglewasgood

toStanford.Infact,GoogleandStanfordareliterally

businesspartners.OneofGoogle’smainassets,the

PageRankpatent,isownedbyStanfordUniversity.

Googlepaidtheuniversityinstockandcashfor

anexclusivelicensingpartnership,plusAnnual

royalties.Thepatentisexclusivelylicensedto

Googleuntil2011.Typically,ifthepatentisproduc-

ingresults,itcanberenegotiatedatthattime.

c01.indd40

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TheGoogleGuys41

•ItwasoneoftheirStanfordprofessors,David

Cheriton,whointroducedLarryandSergeytoAndy

Bechtolsheim,whoisnotonlyacomputerwhiz,

butalsoawizardatspottingSiliconValleystartups,

inwhichheinvests.Cheritonbecameanearly

Googleinvestoraswell.

•Google’sfirstemployeewasfellowgraduatestudent

CraigSilverstein.SilversteinnowisGoogle

’s

DirectorofTechnology.

•Sergey’sPh.D.advisor,ProfessorRajeevMontwani,

becameacompanyadvisor

whenSergeyandLarry

leftStanford.MontwanialsowasanearlyGoogle

investor,holdinganundisclosedamountofshares

inthecompany.

•In2002,TerryWinogradtookasabbaticalfrom

Stanfordandbecamevisiting

researcheratGoogle.

Hespenthistimetherestudyingboththetheory

andpracticeofhuman-computerinteraction.

•ThedesignerofGoogle’slogo,RuthKedar,wasa

Stanfordfacultymember.

•JohnHennessyhasserved

ontheGoogleboardof

directorssinceApril2004.Beforebecomingpresident

ofStanfordin2000,Hennessyheldvariouspositions,

includingdeanoftheSchoolofEngineeringand

chairoftheDepartmentofComputerScience.

•EricSchmidthastaughtbusinesscourses,part

time,atStanford.

c01.indd41

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GOOGLESPEAKS

•ForbothLarryandSergey,

theStanfordconnection

becamepersonalwhentheymarriedwomenthey

metthere.Sergeywedthedaughteroftheheadof

thephysicsdepartment,AnneWojcicki.

•LarryPagemarriedStanfordgraduateLucySouth-

worth.

BURNINGMAN

JustdaysafterGooglewentpublic,thefoundersheaded

outtoBurningMan,anindication,sayfriends,that

wealthhadn’tchangedtheirpriorities.

OneofthefirstGoogle

doodleswasastickfigure

addedtothestandardlogo.Itsignaledtoemployeesthat

LarryandSergeyhadslippedawaytomakethelong

driveintoNevada’sBlackRockDesertforthenotorious

festivalofpersonalfreedom.

TheyandEricSchmidtare

amongthenearly50,000

peoplewhogatherfortheeventeachLaborDayweek

inoneofthemostbarrenanddesolatelandscapes

anywhere.Infact,LarryandSergeytookaspecial

interestinSchmidtwhentheyinterviewedhimforthe

potentialCEOofGooglebecausehewastheonlycan-

didatewhoattendedBurningMan.Friendssaythat

LarryandSergeyhavereceivedlotsofinspirationfrom

BurningMan.

c01.indd42

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TheGoogleGuys43

BurningMan—fromits1986startonSanFrancisco’s

BakerBeachthroughitsevolutionintothebustlingcity

ithasbecome

—alwayshasbeenstrange.It

’sart,it

’s

music,it’slifestyle,it’sfreewheelingbehaviorandattire

(orlackofattire)—it’sanoutpostforradicalpersonal

expression.Theritualtorchingofa40-footeffigyofa

manhasbecomealmostsecondarytoalltheother

activities.

Thosewhoshowupmustprovideentirelyfortheir

ownneeds,andtheycomeexpecting(andnodoubt

hopingfor)anything:Afederalgovernmentemployee

wasastoundedtorunintoherbossstrollingthrough

BlackRockCity(BRC).Hewasdressedinboots,chaps,

acowboyhat,andnothingelse.Aphotographcirculates

ontheInternetofSchmidtat

BurningMan,dressed

modestlyinacotton-candy-pinkcowboyshirtandhat.

Hewaswearingpants.

IfyougolookingforLarry,Sergey,orevenEricatthe

gatheringofthetribe,don’texpecttospotthem.They

surelywillbetrickedoutin

elaboratecostumesand

facemakeup.

c01.indd43

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Adult

Supervision

EricSchmidtissometimescalled

“thethirdlegof

Google.”Likethethirdlegonastool,hehelpskeepbal-

ance.Andeventhoughhisbackgroundisintechnology,

healsomovestheGooglebusinessmodelforwardina

decisive,purposefulway.

Althoughtheyhadpromised

theirventurecapitalists

thattheywouldhireaseasonedCEOforGoogle,Larry

andSergeywereatfirstslowtodoso.Thetwocouldn’t

findanyonewhosuitedtheirstyle.Venturecapitalists

JohnDoerrandMichaelMortizwerepushingthemto

getonwithit.TheyfinallysenttheGoogleguyssome-

onetheyhadseeninactionbefore:Dr.EricSchmidt.All

ofthishappenedthreeyearsbeforeGooglebecamea

publiccompany.

44

c02.indd44

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AdultSupervision45

SchmidtnowsharesresponsibilityforGoogle’sdaily

operationswithLarryandSergey,andasCEOhehas

legalresponsibilityforthecompany

’svicepresidents

andthesalesorganization.

Schmidthasbeendescribedasmoreofapragmatist

thanavisionary,alow

-keyedleaderandaskilled

collaborator.

AfterSchmidthadbeenat

Googleforawhile,heand

BrinandPagemadeaninformalpacttostaytogetherin

theGoogleventureforatleast20years.

“Weagreedthemonthbeforewewentpublicthatwe

shouldworktogetherfor

twentyyears,”saidSchmidt.

Bythetimetheagreementisfulfilled,Schmidtwillbe

69yearsold;Pagewillbe51,andBrin50.1

Knownforhisslogan,

“Don’tfighttheInternet,

”2

SchmidtiscreditedwithpositioningGooglesmackin

themiddleofnearlyeveryimportantdevelopment

relatedtothecommercializationoftheWeb.

THECOLLECTIVEWISDOMOFSILICONVALLEY

EricEmersonSchmidtwasborninthespringof1955in

Washington,D.C.Aftergraduatingfromhighschoolin

Yorktown,Virginia,heearnedanelectricalengineering

degreefromPrincetonUniversityandthenadoctorate

incomputersciencefromtheUniversityofCaliforniaat

Berkeley.

c02.indd45

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46

GOOGLESPEAKS

Schmidtearnedhistech

stripestoilingintheranksof

respectedSiliconValleyveteranorganizations.He

workedataseriesofcompanies,includingBellLabs,

Zilog,andXerox’slegendaryPaloAltoResearchCenter

(PARC).Heprogressedto

chieftechnologyofficeratSun

Microsystems,andthentochiefexecutiveofficerof

Novell.WhenNovellwasacquiredbyCambridgeTech-

nologyPartners,Schmidtleftthecompany,makinghim

availableforrecruitmentbyGoogle.

ThoughtheimplicationthatSchmidtprovidesadult

supervisiontoimpetuousyoungmenmayrankle,occa-

sionallySchmidt’sparentalproclivityhaspoppedupin

public.Atonemeeting,LarryPagewasaskedabouthis

opinionoftheU.S.PATRIOTAct,legislationthatsome

peoplefearimpingesonpersonalprivacy.Larrystarted

toreplywiththeoreticalcommentsabouttheAct,when

Schmidtinterrupted,“Thebestwaytoanswerthatis,it’s

thelawof[the]landandwehavetofollowit.”3

(Formoreaboutprivacy,seethesection

“Privacy

Issue”inthechapter“GoogleGrowsUp.”)

HE’SBEENTHEROCK;THEY’VEBEEN

THEROCKETS

Schmidt’swell-seasoned

perspectivehasbeenaneffective

complementtotheGooglefounders

’youthfulexuber-

anceandimpatientgoals.Schmidtseemstotelegraph

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AdultSupervision47

reliabilityandstability.Yet,despitehisdown

-to-earth

demeanor,Schmidtencouragespeopleto“setaudacious

goals.”4Totheircredit,LarryandSergeyhadenough

acumentochooseSchmidtasapartner,andclearlythey

havelearnedfromhim.

AtGoogle’s2008annualmeeting,Schmidtdeclared

thattheGoogleguyshadgrownup:

Theynowfunctioninthecompanyastheseniorexecu-

tiveswiththekindofskillsandexperience....

AtthatpointLarryinterrupted,“...wewishwehadfive

yearsago.”

Schmidtcontinued:

Nowwedon’thavethesamekindofarguments.In

fact,theyreallyarerunningthecompaniesthatthey

foundedatthescaleandwiththeinsightsthatyou

wouldexpectofpeoplewhoarenolongeryoung

foundersbutarematurebusinessleaders.5

AMANOFINFLUENCE

ThankstoGooglestockoptions,Schmidtranksasthe

126thrichestpersonintheworld,accordingtoForbes.

SchmidtalsoservesonPrincetonUniversity

’sand

Apple’sboardofdirectors.

Asforhispersonallife,

Schmidtandhiswife,Wendy,

liveinAtherton,California.Theycollectmodernartand

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48

GOOGLESPEAKS

theworkofcontemporaryartistsandrunafamilyfoun-

dationthatmakescontributionstoenvironmentaland

economicsustainabilityprojects.Heisanavidprivate

pilot,whichmayexplainGoogle’sinterestingfleetof

aircraft.

Towardtheendofthe2008presidentialcampaign,

SchmidtcameoutinfavorofBarackObamaandbegan

stumpingthecampaigntrailwiththecandidate.Despite

Schmidt’spreference,mostofthe2008presidentialcan-

didates,includingHillaryClintonandJohnMcCain,vis-

itedGoogleplexandspokewithemployees.

Schmidtexplainedhispersonalpositionthisway:

Well,peoplegiveforall—forallsortsofreasons,but

myownviewisthatSenator

Obama,nowpresident-

electObama,touchedachordwhenhetalkedabout

makingtheworldabetterplaceforallofus.Hisfocus

onthemiddleclass,hisfocusonmakingeducation

stronger,hisfocusonscience,andhisfocusondou-

blingtheresearchbudget.Allthingswhichhavelargely

beenignoredunderthecurrentadministration,those

arethethingsthatIthinkthatreallyhitachordandof

coursetheydidn’thitachordwiththeopposition.6

ObamatoldvotersthatSchmidtwouldbeamongthe

businessleaderstobeadvisinghimifhewereelected

president.Schmidt’snamewasatthetopofthelisttobe

namedObama’scabinet-leveltechnologyadvisor,but

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AdultSupervision49

Schmidtsaidhewasn’tinterestedinthepost.Afterthe

2008election,SchmidtappearedonCNBC’sMadMoney,

andJimCrameraskedhimaboutthepossibility:

CRAMER:Allright,butlook,

here’swhatIwoulddoif

Iwere(Obama).Iwouldsay,okay,Eric,youtalka

goodgame.IwantyoutoresignfromGoogleand

cometoworkformeasmychieftechczar.Ifcalled,

wouldyoudoit?

SCHMIDT:Iloveworkingat

Google,andI’mhappy

atGoogle,sotheanswerisno.7

PerhapsSchmidtalsodemurredduetohiscommitment

tostaywithGoogleforthelonghaul.

BecauseofhisworkwithPresidentObamaandlabors

onbehalfofthequestforviablealternativeenergy

sources,Schmidthasbeeninthepubliceye.Nancy

Litwack-Strong,aDenverPostreader,whogrewupina

homewhere

menschwasawordofhighpraise,

respondedtoacolumnaboutSchmidtthisway:

AfterreadingAlLewis’columnonSunday,Ifeelcom-

pelledtocallGoogleCEOEricSchmidtamensch.He

understandsthesocietalfunctionsthatourtaxessup-

port,heappreciatesthe

opportunitiestosucceedthat

hehashadinthiscountry,andheishappytodohis

fairsharetokeepourcountrygreatandkeepour

countrystrong.Iwishmorepeoplethoughtlikehim.8

c02.indd49

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50

GOOGLESPEAKS

Despitethisimpression,somesaySchmidtcanbequite

harsh.RumorscirculateontheInternetabouthisper-

sonallifeandsomeconsiderhimaSvengali,justas

interestedincontrollingtheworldaschangingit.Cer-

tainly,hehastakenahardlineoncopyrightandprivacy

issues.Whileheclaimstoalignwiththeinterestsof

Internetsearchers,heclearlyalignswithGoogle’sbest

chancestoselladvertising.

CLIMBINGADIFFERENTKINDOFMOUNTAIN

IsthereanythinginhislifeSchmidtwantstoaccom-

plishandhasn

’tyetdone?Yes,thereis.

“I’vealways

wantedtoclimbMt.Everest,

”hetoldagatheringof

NASAscientists.“Whenyoulookatme,clearlythat’s

notgoingtohappen.”9Hehas,though,climbedvicari-

ouslyusingGoogleEarth,andhefoundEveresttobe

extremelycold.

c02.indd50

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Inthe

Beginning

Fromthetimetheymetin1996until1998,Larryand

Sergeycontinuedtoexperimentwithvarioussearch

ideas.Larrybeganstudying

theimportanceoflinks

withhisownhomepageontheStanfordwebsite.With

thesearchenginehenamedBackRub,hewroteand

improvedonsearchcodebasedonlinksbetween

websites.

PageandBrinsoonlatched

ontotwobigideas.The

firstwasbasedonBackRubbutwasrenamed“Page-

Rank”afterLarryPage.PageRanktreatedthenumberof

timesasitewaslinkedtoothersasaroughmeasure

ofitsauthority.Thesecondwastoautomateandsanctify

thesearchprocessandtocopewiththeever-increasing

numberofsites.Inordertogivesomeobjectivityto

theresults,humanscouldworkwiththealgorithm,

51

c03.indd51

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52

GOOGLESPEAKS

butnevertinkerwiththesearchresults.(Thisstillis

mostlytrue.However,withtheintroductionofGoogle’s

SearchWiki,searchersthemselvescantailorthe

results

invariousways.)

OnceLarryandSergeyhaddefinedthenewwayto

searchanddelivertheresults,theywerefacedwithtwo

moremajorproblems:howtocollecttheentireWorld

WideWebintoonedatabase

andhowtofindenough

computerpowertostoreandprocessthehugevolumes

ofinformation.

Thepairscroungedaroundtocollectcomputersfor

theproject,oftenhauntingtheStanfordloadingdocks

formachinerytoborrow.The

firstversionofGoogle

wasreleasedinAugust1996,ontheStanfordWeb.The

addresswasgoogle.stanford.edu.

VeryquicklyStanfordgrewwearyoftheburdenthe

twogradstudentswereplacingonitssystem.Theyin

turnoutgrewStanford’scapacitytoprovideequipment

andtohandletheburgeoningnumberofsearchrequests

comingin.Alittleoverayearlater,SergeyandLarry

tookthesearchengineoffStanfordserversbecause

Googletookuptoomuch

bandwidth.In1997,Google.com

wasregisteredasadomainname.

Theneedforphysicalequipmentcontinuedto

explode.Withoutinitialresources,LarryandSergey

foundcomputersandequipmentwhereverthey

could.

TheycobbledtogetherinexpensivePCstoholdtheir

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IntheBeginning53

data.Theygotagooddealonaterabyteofdisksand

builttheirowncomputerhousingsinLarry

’sdorm

room.Thedormroombecametheirfirstdatacenter.

“Larrywouldscourtheworldtosaveapenny,”recalled

CharlesOrgish,Stanford’s

headofcomputersystems.1

Whatstartedasanecessitysoonbecameoneof

Google’scompetitiveadvantages.Theyfoundthattheir

jerry-riggedcomputersystemwaseasytorepairand

modify.“Othersassumedlargeserverswerethefastest

waytohandlemassiveamountsofdata.Googlefound

networkedPCstobefaster,”explainedGoogleonits

CorporationInformationWebpage.

VenturecapitalistandGoogleboardmemberJohn

DoerrsaysthatGoogleuses

“pile-up”computing.It

pilesupabunchofcomputers,connectsthem,and

buildsadatacenter.Thewaythemachinesaresetup,

whenonebreaksdowntheentiresystemdoesnotbreak

down.Thecrippledmachineisignoredandtheworkof

processingqueriescontinues.

Bymid-1998,Sergeysetupabusinessoffice,andthe

pairbegancontactingpotentialpartnerswhomight

wanttolicenseasuperiorsearchengine.

TheyhopedtosellGooglethroughtheventurecapi-

talfirmofKleinerPerkinsCaulfield&Byers.They

shoppedthecompanyaroundat$1million.AltaVista,

Excite,andthenow-defunctInfoseekwereamongthe

companiesthatsawnocommercialbenefittoGoogle.

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GOOGLESPEAKS

Nodoubttotheireverlastingregret,thesecompanies

passed.LarryandSergeyhadnoluckfindingabuyer.

Theyoungentrepreneursfacedadauntingproblem.

Whiletheywerepassionateabouttheirproject,atthat

timefewothersinthecomputerindustrysawInternet

searchasanimportantaspectoftheirwork.

However,whenLarryandSergeycalledonDavid

Filo,oneofthefoundersof

Yahoo!,herecognizedthe

valueoftheirtechnologybutencouragedthemtogo

forwardwithformingtheirowncompanythewayhe

andJerryYanghaddone.“Whenit’sfullydevelopedand

scalable,”Filosaid,“let’stalkagain.”2

Itwasn’ttheanswertheywerehopingfor,butitgave

themencouragement.AndFilodidpointtheminthe

rightdirection.Thedisappointmentinnotbeingableto

selltheirworkmayhavebeenthegreateststrokeof

luckintheirlivessofar.

“Thatpeoplewereconcentratingonotherthingswas

crucial,”recallsCraigSilverstein,thecollegefriendwho

wasthefirsttojoinPageandBrinasanemployee.“It’s

verypossiblethatifsomeonehadbeentrulyinterested

inourtechnology,wewouldhavejustsoldtothem.”

“Werecognizedthatalotofcompaniesdon’tmakeit,”

addedSilverstein,nowGoogle’sdirectoroftechnology.

“Theventurecapitaliststriedtoscareus,sayingthat80

percentofstart-upsfail.

Larryshotbackwith:‘Yes,but

mostofthosearerestaurants.’”3

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IntheBeginning55

Goingitalonewasarisk,butLarry’sself-confidence

showedupearlyintheGooglegame.Hisadvisor,Terry

Winograd,feltthestudentshadaviableproductbut

knewtheyneededtomoveoffcampusandbeginacting

likearealcompany.ThattookmoneythatSergeyand

Larrydidn’tyethave.“I

don’tseehowyou’reevergoing

togetthemoney,”lamentedWinograd.Larryreplied,

“Well,you’regoingtosee.We’llfigurethatout.”4

RuthKedar,whodesignedtheGooglelogo,saidshe

felttheGoogleguyscametoherwithvision,direction,

andoptimism.“Ingeneral,”saidKedar,“whenpeople

speakabouttheirbigdreamsinlife,theyapologize

manytimesforit,forthepretension.They(Brinand

Page)weren’tlikethat.Itwascleartothemfromthe

startthattheyhadsomethingbigontheirhands.”5

Google’scorporatepagenotedthatdespitethequiv-

erybeginning,Googlewasonitswaybythelate1990s.

“Clearlyweevolved,”saystheGooglewebsite.“What

hadbeenacollegeresearchprojectwasnowareal

companyofferingaservicethatwasingreatdemand.

SoonSeptember21,1999,thebetalabelcameoff

Google.com.”

THEULTIMATESEARCHENGINE

In1996,Larrycameupwiththenotionofusinglinks

betweenWebpagestoranktheirrelativeimportanceto

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GOOGLESPEAKS

searchers.Themorelinksawebsitehad,themore

likelyitwastocontainthemostusefulinformation.

Theconceptsoundssimple;executingtheideawasa

littlemorecomplicated.Nevertheless,itdidn’ttakelong

forPage’sbrainchildtodominatetheworldofInternet

search.

PeopleuseGooglemorethan

200milliontimesaday

inmorethan100languages,fromKurdishtoKlingon,

anditdoesdelivertheresultsinaflash.Googlesearches

fivebillionWebpagesforlinksintwo-tenthsofasecond.

ByearlyNovember2008,Google’sshareofdomestic

Websearchesgrewto71.7percent,comparedwith

17.7percentbyitsclosestcompetitor,Yahoo!,and5.4

percentbythird-rankingMicrosoft.Googlealsoruled

thesearchbusinessfinancially,claiming76percent

ofthe2008marketinterms

ofrevenue.6

OneofthereasonsforGoogle’ssuccessisthatpeople

liketheresults.Butaddingtothat,Googleisubiquitous.

Itisconstantlybeforetheeyesofmostpeopleusing

theInternet.Googlehasbeenabletoprovidesearch

servicesforalargenumberofInternetoperations,

includingAmericaOnLine(AOL)andthefreeWeb

browser,MozillaFirefox.In2007,theMozillaFounda-

tionreceived$66million,or88percentofits$75million

inrevenues,fromapartnershipwithGoogle.

YetLarryandSergeybelievethatGooglestillisin

theearlystagesofdevelopment.Thesearchengineof

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IntheBeginning57

thefuturewillbesomuch

moreintuitive,morealongthe

linesofasuperintelligence—areferencelibrarianwho

knowseverythingthereistoknowandhowtofindit.

Google’sMarissaMayerwonderswhysearchhasto

bewithwords.“Whycan’tIentermyqueryasapicture

ofthebirdsoverheadandhavethesearchengineiden-

tifywhatkindofbirditis?Whycan’tIcaptureasnippet

ofaudioandhavethesearchengineidentifyandana-

lyzeit(asongorstreamofconversation)andtellme

anyrelevantinformationaboutit?”

“Ifanybodythinksthefutureofsearchisgoingtolook

likethepresentsearch,that

’scrazy,

”saidMicrosoft

CEOSteveBallmer.“Theuserinterfaceonsearchhasn’t

changedforsixyears.You

stillgetthesamedull,boring

10bluelinks,forGod’ssake.Can’twedobetterthan

that?”8

NOTINVENTING,BUTIMPROVINGUPON

InternetsearchwasgoingonlongbeforetheGoogleboys

attackedtheproblemofachievingmeaningfulresults

fromsearches.Althoughtheydidn’tinventtheconceptof

search,theyvastlyimproveduponsearchtechniques.

SusanWojcicki,whosehomeservedasGoogle

’s

incubator,recallsmanyearlydiscussionsaboutsearch.

“Notanotherbutabettersearchengine,

”shesaid.

“Fromthebeginningtheyhadaveryclearvisionthat

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GOOGLESPEAKS

theycouldbuildsomethingmuchbetterthanwhat

existedatthetime.”9

Google’sCorporateInformationWebpageexplains,

“Whereothersaccepted

apparentspeedlimitsimposed

bysearchalgorithms,Googlewrotenewalgorithms

thatprovedtherewerenolimits.AndGooglecontinues

toworkonmakingitallgoevenfaster.”

LongbeforeGooglecamealong,newspapers,maga-

zines,andnewlyestablishedwebsitesbelieveditwas

possibletoreaprewardsfromInternetadvertising.

Nonewereverygoodatit.Yettoday,Googledominates

thatbusiness.Googleperfectedanadvertisingconcept

developedbyacompany

calledGoTo.com,whichlater

wasrenamedOvertureandsoldtoYahoo!.Frome-mail

tocellphoneplatforms,Googlehasahistoryofcoming

inlateandmakingitbetter.

TherearemultipleexamplesofhowGoogleeither

borrowedorboughtconceptsandmadethembetter

andmoreusable:

•Thecompanyacquireditshypnoticsatellite

-

imageryapplicationwhenitacquiredKeyhole,the

firmthatdevelopedthe

technology.

•In2005,Googleboughtthepopularphoto-sharing

site,Flickr.

•ThereweremanymapservicesbeforeGoogle

launchedGoogleEarth,butnoneofthemachieved

thesamepopularappeal.

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IntheBeginning59

WhileGoogleisbestknownforbuildingonexisting

technology,thecompanyhaspatentedaround113new

ideasinitsfirsttenyearsofexistence.Formoreonhow

Googledoesit,checkoutthesection

“20Percent

Projects”inthechapter“GoogleCulture.”

LOOKAROUNDYOUFORINSPIRATION

LarryPagesaysthathefindstremendousinspirationin

thesciencealreadyoutthere.Hedemonstratedtoa

groupofstudentsthewayasmall,mouse-likerobotwas

abletoscurryoverobstaclesquicklyandeasilyasit

wentaboutitswork.“Thisisaprettycoolthing.I’ve

neverseenanythingquitelikethisbefore.Anditturns

outthatit’stentimescheaperthanallotherrobotslike

it,”saidPage.

Whatmakestherobotdifferentandmoreeffective

thanothersisthatitdoesn’tuseintelligencetomove

forwardandfinditsway;insteadithasspringsfor

legs.

Itjustboundsalongthewaycockroachesdo.Ifithitsan

obstacle,itspringsinadifferentdirection.Someonehas

alreadyinventedthespringingrobot,buttheidea

behinditcanbeappliedelsewhere.

“Thishasgreatimplicationsifyou’rebuildingrobots,

forexample,

”Pagenoted.

“Ifyoufindoneofthese

[ideas]anduseitasafoundationforacompanyoran

inventionorentrepreneurship

you’reinamuchstronger

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GOOGLESPEAKS

businesspositionandthat’sagreatplacetobeifyou’re

startingacompany.”10

HOWSEARCHWORKS

Googlerocks.ItraisesmyperceivedIQbyatleast20points.

Icanpullareferenceorquoteinseconds,andIcanfigureout

whoI’mtalkingtoandwhatthey’reknownfor—akeyfeature

forthoseofuswhoarename-memorychallenged.

—WesBoyd,president,MoveOn.org11

Googleonceclaimedthatpigeonspowereditssearch

results,butthatwasjustanotherAprilFool’sDayjoke.

Itisestimatedthatin2007

Googlewasprocessing

morethan37billionsearchespermonth,compared

with8.5billionbyYahoo!and2.2billionbyMicrosoft.

MostpeoplesearchoutinformationontheInternet,

oftenmultipletimeseachday.Yetfewpeoplecompre-

hendhowsearchreallyworks.

Insimplifiedform,itgoessomethinglikethis:

Step#1:Youenterawordorseriesofwords,andthe

searchengineconnectsyoutothosewordsina

databaseithascreated.Fromtheoutset,Larryand

SergeyaimedatputtingtheentireInternetintoits

database.Thecompanystillstrivestodothat,plus

addingmanyothersourcesofinformation.

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IntheBeginning61

Step#2:Theenginesearches,usingthreemajor

segments:

1.Thecrawl,whichactuallydoesn’tcrawl.Rather,it

broadcastsrequeststothousandsofWebpages

seekingyoursearchwords.Thecrawleralsois

calledaspider.

2.Theindex,amassivedatabasewherethewords

arestoredandfound.

3.Theruntimesystem—alsocalledaqueryprocessor.

Thisstepdeliverssearchresultsbacktothe

questioner.

Thisscenario,however,doesn’texplainexactlyhow

Google’suniquesearchworks.Thatcodeisacompany

tradesecret.ButLarryPage,whocameupwiththe

originalidea,givesussomeclues.

Soonafterarrivingat

Stanford,Pagebeganmeeting

withhisdoctoralprogramadvisor,TerryWinograd,to

discussprojects.“Wesettledonlookingatthelinkstruc-

tureontheWeb,”saidPage,“howtograballthelinks

andanalyzethemanddosomethinginteresting.We

eventuallywoundupwithawaytorankWebpages

basedonthelink,thenrealizedwecouldbuildabetter

searchengine.Andwedidjustthat.”12

TheGooglewebsiteexpandsonPage’sexplanation:

Insteadofrelyingonagroup

ofeditorsorsolelyonthe

frequencywithwhichcertaintermsappear,Google

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GOOGLESPEAKS

rankseverywebpageusinga

breakthroughtechnique

calledPageRank.PageRankevaluatesallofthesites

linkingtoawebpageandassignsthemavalue,based

inpartonthesiteslinkingtothem.Byanalyzingthefull

structureoftheweb,Googleisabletodeterminewhich

siteshavebeen“voted”thebestsourcesofinformation

bythosemostinterestedintheinformationtheyoffer.13

LarrynamedPageRank,theprogramthatelevated

Googleoverothersearchmethods,afterhimself.He

startedwithaconceptthathewasfamiliarwith,one

usedinacademicresearch.Thatis,apublication

’s

importanceisdeterminedbythenumberofcitationsit

receivesinothersignificantjournals.Peerreviewdeter-

minesapublication’srelevanceandreliability.

Again,Google’sTechnologypageexplainshowthe

processgetsmorecomplicated:

PageRankreliesontheuniquelydemocraticnatureof

thewebbyusingitsvastlinkstructureasanindicator

ofanindividualpage’svalue.Inessence,Googleinter-

pretsalinkfrompageAtopageBasavote,bypageA,

forpageB.ButGooglelooksatconsiderablymore

thanthesheervolumeofvotes,orlinksthepage

receives.Forexample,italso

analyzesthepagethat

caststhevote.Votescastbypagesthatarethemselves

“important”weighmoreheavilyandhelptomake

otherpages“important.”Usingtheseandotherfactors,

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IntheBeginning63

Googleprovidesitsviewsonthepages

’relative

importance.14

Andthat

’sstillonlypartofthe

protocol.It

’salmost

impossibletofathom,butPageRankconsidersmore

than500variablesand3billiontermsandstillmanages

todeliverresultsinfractionsofasecond.Yettherealso

isacertainsimplicitytothesearchprocess.

“Bytheway,

”observedStanfordProfessorRajeev

Motwani,anearlyGoogleinvestor,

“youmight

havenoticedthatthejobof

thesearchengineisnothing

morethanwhatahumblelibrariandoesallthetime

andmoreintelligently!However,theautomationin

thesoftwarecomestoourrescueincopingwiththe

exponentialriseininformation.”15

PLATFORMPOWER

Whenpeopleinthecomputer/Internetworldusethe

word

platform,ithasmultiplelevelsofmeaning.At

timestheyappeartobetalkingabouthardware.Other

times,it’ssoftware,andthenitcanbetheInternetitself

oraparticularwebsiteorsearchengine.Itcaninfact

refertoanyoneoftheseelements.

“Platformsaretheplayingfield,”explainsJohn

McDougall,aChicago-

basedcomputerexpert:

Bigplatformsaregenerallyindustry

-wideandwith

anagreeduponsetofstandardswhicharedeveloped

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GOOGLESPEAKS

andcontrolledbyastandardsgroup.Inthecase

oftheInternet,thatgroupistheWorldWideWeb

Consortium.Smallerplatformsarealsoplayingfields,

butmorespecificintheirrangeorscope.Whocontrols

thestandardsorrulesforthese?Theplayingfield

determineswhocanuseorwhocanplaywiththe

platform.16

Aplatformrepresentsaninfrastructureofsomekind.It

isaframeworkonwhichtobuildaneconomy,asociety,

oracorporation.So,intheworldoftechnology,aplat-

formisanoperatingsystem,togetherwiththehardware

onwhichitruns.

Google,YouTube,Facebook,Flickr,andsimilarplat-

formshavefourmainpowersthatconstitutegenuine

andvaluableauthority:

1.

Thepowertosettherulesofbehavior

2.

Thepowertopreserveandexploituser-generated

content

3.

Thepowertopromoteandfeaturepreferred

content

4.

Thepowertodefinethetypesofinteractionavail-

abletousers

ProfessorJoelWest,whoteachesinthecomputer

programatSanJoseState,saysallofthisistrue,but

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IntheBeginning65

thosewhooperateplatformsneedpeoplewhoprovide

third-partyproductsandservices,anecosystemthat

helpstheplatformoperate.Oftenthisecosystem

includescompaniesthatarecompetitiveinsomearea.

Google’sAndroidsoftware,forexample,competeswith

Apple’siPhone,buttheycooperateonotherprojects

whenbothcanprofitfromthat.Expertsinthefieldhave

dubbedthissurvivaltoolcoopetition.

Googleisthoughttohavethemostpowerfuland

extensivecomputingnetwork

—bothinitsphysical

equipmentandinitsdatabase—inexistence.

“Ifyouprintedouttheindex,itwouldbe70miles

highrightnow.Wehaveallthiscomputation,

”said

Page.“Wehaveabout6,000

computers,sowehavealot

ofresourcesavailable.Wehaveenoughspacetostore

like100copiesofthewholeWeb.Soyouhaveareally

interestingsortofconfluenceofalotofdifferentthings:

alotofcomputation,alotofdatathatdidn’tusedtobe

available.”17

Googleisstrivingtomaximizeitsplatformpowerin

everywayitcan.Thisisoneofthereasonsthecompany

hasbranchedintomobile-phonetechnology.Theper-

sonalcomputerhasbeenthedominantplatformfor

accessingtheInternetaroundtheworld.However,in

manyplaces,Internetaccessbymobilephoneisout-

pacingwirelessaccessfromacomputer.Thereisan

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GOOGLESPEAKS

extensivebaseofmobilephonesglobally,andwireless

networksareexpandingdaily.

OPENPLATFORM

WhileGooglewavestheflagforopenplatforms,the

detailsoftheirownplatforms

oftenarecarefully

guardedsecrets.

Ata2008Web2.0conference,Google’svicepresi-

dentofengineering,VicGundotra,arguedthatcontrol

oftheplatformbyasingleproviderbydefinitionslows

downinnovation.ThiswasaveiledreferencetoGun-

dotra’sformeremployer,Microsoft.Microsoftexecutive

DavidTreadwellwasonthesamepanel.Hechallenged

Googletoreleaseintothecommunitythedrivingtech-

nologyofitsbusiness,its

searchengine,andadplat-

forms.Gundotrashotbackthathewasn’tadvocating

totalcontrol,andthatabalancecouldbestruckbetween

businessinterestsandthebroaderinterestsofthe

community.18

SanJoseState’sJoelWestsaysthatthetermopenhas

disintegratedintoamarketingterm,andGoogleisdis-

ingenuouswhenitimpliesitisanopenplatform.“Every

platformisopentosomedegreeandclosedtosome

degree.Thisisnecessaryif

thecompanyistocontinue

asabusiness.Googlemaybemoreopenthanmost

companies.”ButWestsaysthatfewofitsproductsare

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IntheBeginning67

fullyopen.“Androidisnotopen.Tosaysoismislead-

ing.Onlyasmallnumberof(chosen)peoplehave

accesstoitscode.

”GoogleBooks,hesays,isclosed,

becausenootherInternetprovidercanusethebooks.

Evenreadershavelimitedaccess,whichiscontrolled

entirelybyGoogle.19

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GoogleBy

AnyOtherName

PartofGoogle’sinstant

attractionisitsquirkyname.It’s

funtosay“Googleit.”It’seasytoremember.Ithasa

ringtoit.Somehow,itisn’tasentertainingtosay“Yahoo!

it”or“MSNit,”oreven“Gotoit.”Googleisoneofthosewordsthatisinherentlyamusing,andinfact,many

yearsagotherewasacartooncharacternamedBarney

Google.Thecomicstripinspiredthezany1923song,

“BarneyGoogle,withtheGoo-Goo-GooglyEyes.”

ABLESSEDBLUNDER

ItwasLarryandSergey

’sideatonamethecompany

googol—themathematicaltermforthenumber1fol-

lowedby100zeros.MiltonSirotta,anephewofthegreat

mathematicianEdwardKasner,coinedtheword.Itwas

68

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GoogleByAnyOtherName69

popularizedinabookKasnerco-authored,Mathematics

andtheImagination.Thefoundersfeltthatthename

googolwouldreflectGoogle’sambitiousgoaloforganiz-

ingandmakingavailablealloftheworld’sinformation.

Fortunately,someonemisspelled

googol,andthe

bungledversion,Google,tookhold.Itwasjustaswell.

Asitturnsout,thetermgoogolwasn’tavailablefora

websitename,anyway.

FROMNOUNTOVERB

Google’sfounderswereworriedfromtheoutsetthat

theywouldlosecontroloftheircompanyname.Inthe

prospectustheywrotethat“thereisariskthattheword

‘Google’couldbecomeso

commonlyusedthatitbecomes

synonymouswiththeword‘search.’Ifthishappens,we

couldloseprotectionforthistrademark,whichcould

resultinotherpeopleusingtheword‘Google’toreferto

theirownproducts,thus

diminishingourbrand.”

Itdidhappen.Oddly,thefirstrecordeduseofGoogle

asaverbwasinanearlye-mailthatLarryPagesent

tofriendsandfellowstudents.Hetoldthemto“Keep

Googling.”Withbreathtakingspeed,thenoun

Google

becameaverbaseveryonewenttotheircomputersto

Googleeveryoneelse,oreventoGooglethemselves.

Googletheverbwasaddedtothe

OxfordEnglish

Dictionaryin2006,butit

wasn’tcauseforcelebrationat

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GOOGLESPEAKS

thecompany.Asexpected,executivesatGooglegrowled

overthepossibilityofbranddilutionandotherdark

implications.

PLAYINGWITHTHENAME

OneWebjokestersurmisedthatGoogleisjustaclever

playonwords—andthenamereallymeans“Google.”It

couldverywellworkthatway.Peoplelovetoplaywith

thename.Thesearchenginenamespawnedawhole

listofderivativewords.

AsGoogle,Microsoft,andYahoo!lockedhornsina

convolutedbusinessdeal,Internetwagstalkedabout

apossiblenewcompany,Microhoogle.

RecentheadlinesintheUnitedKingdomdeclared

thatthecountrysufferedfromdiscomgooglation,aterm

describinghowfrustratedpeoplefeltwhentheycouldn’t

accesstheInternet.Thenthereis:

Googly—usedwithinthecompanytodescribeanything

thatiscompatiblewithGoogleculture

Googleplex—companyheadquartersinMountainView,

California

Googlers—thosewhoworkatGoogle

Googlian—anythingderivedfromaGoogleconcept

Googlicious—justpeachy—wonderfulintheGoogleway

Andnodoubtthereare

oodlesofGooglestocome.

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GoogleByAnyOtherName71

THEGOOGLELOGO

Google’spublicimageisfurtherenhancedbythe

delightfullysimplecrayon-coloredlogoanditsplace-

mentonitssparehomepage.ThelogomakesGoogle

seemapproachableandfriendly.

Reminiscentofthelettersonchildren’sbuildingblocks,

itquicklyevolvedintooneoftheworld’smostrecogniza-

blecorporateinsignias.Google’slogorecognitionisright

uptherewithNike’sswoosh,NBC’speacock,andCoca

Cola’sred-and-whitescriptedname.

BrinandPageweretoyingwithlogoideas,struggling

tocomeupwithasymbolthatexpressedtheemerging

Googleculture.TheyaskedRuthKedar,agraphic

designerandassistantprofessoratStanford,toproduce

someprototypes.“IhadnoideaatthetimethatGoogle

wouldbecomeasubiquitous

asitistoday,orthattheir

successwouldbeofsuchmagnitude,”Kedarsays.1

Kedar,whowasborninBrazilbutgrewupandwas

educatedinIsrael,wasimpressedthattheyoungmen

withachancystartupinsistedonpayingforthelogo.

SheonlywishesshehadtakenpaymentinGoogle

shares.

Thelogoasweknowittodaygivestheimpression

thatitwasaquick-and-easysketch-up,whereasinfact

itwentthroughmanychangesinthedesign

process.

KedarbeganwithafirsttrythatSergeyhadcreatedwith

freedesignsoftware.

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GOOGLESPEAKS

“Someonewhoseesthelogoforthefirsttimedoesn’t

necessarilyneedtoabsorballthelayersandconsidera-

tionsbehindeverydecision,”saidKedar.“It’sbetterfor

himtodiscoversomethingneweverytime.”2

Kedarsaysthelogo,boththelettersandcolors,is

intendedtoconveythemessagethatInternetsearch

withGooglewillbesimple,strong,andfun.She’snot

concernedaboutthefrequentcommentthatanychild

couldhavecreatedtheGooglelogo.Thecomment,she

believes,speakstothe

effectivenessofthedesign.“It

somewhatamusesmetoturnonthecomputerandlook

atthelogoIdesigned,”saidKedar.“Butitalsofillsme

withpride.WhenyousayGoogletopeopletoday,they

immediatelyseethecolorfullogo.”3

SheaddedthattheGoogledoodle,theenhancements

drawnbyDennisHwang,don’tbotherheronebit.They

playwiththelogoina“veryniceway.”

THEGOOGLEDOODLE

A2008surveyindicatedthatmorethan75percent

ofBritonssaidtheycouldn’tlivewithouttheInternet,

and50percentclaimedthattheInternetwasmore

importantthanreligion.4TheQueenofEnglandherself

hasbecomeacomputeruserandInternetsurfer,soit

wasnaturalthatshewould

wanttovisittheGoogle

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GoogleByAnyOtherName73

officenotfarfromBuckinghamPalace.Onthemorning

ofhervisit,Googleusersin

theUnitedKingdomlogged

ontoaspeciallogo,onedisplayingtheQueen’scheery

face.

ItwasintheUKthatGooglehelditsfirstnationwide

Doodle4Googlecontest,usingthetheme“MyBritain.”

Thewinnerwas13-year-oldKatherineChisnallofTrow-

bridge,whosedoodlewasdisplayedonthenational

Googlewebsite,butnotonthesamedayQueenElizabeth

IIwassohonored.Chisnall

’sdesigndisplayedthe

UnionJackcolorsandfivewondersofBritain,including

Shakespeareandacastle.ShewonatriptoCaliforniato

visitGoogleplexandworkwithHwang.

Ithasbecomeatraditiontotweakthelogoforspecial

occasions.SusanWojcickifirstcameupwiththeideaof

“doodles,”orplayingwiththeemblemforholidaysor

notableevents.Heroriginaldoodlewasanalienland-

ingonGoogle.NowHwangprovidesValentinelogos,

Christmaslogos,andspontaneoussurpriselogos.For

oneHalloween,itwasadark

-and-stormyGoogle,with

aleeringjack-o-lanternforoneoftheOsandadrippingcandlefortheL.Duringthe2008Olympics,thesecond

OinGooglewasreplacedbyaseriesofcartoonath-

letes,includingarunner,abicyclist,andadiver.The

Olympicdiverwas

appropriate,sinceSergeyBrinhas

dabbledinhighdiving.

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GOOGLESPEAKS

GOOGLEZEITGEIST

Writersofthepasthadabsinthe,whiskey,orheroin.Ihave

Google.Igothereintendingtostayfiveminutesandnextthing

Iknow,sevenhourshavepassed,I’vewritten43words,andall

IhavetoshowforitisthatIknowthetitlesofevery

episodeof

NannyandtheProfessor.

—MichaelChabon,author,

TheAmazingAdventuresofKavalier&Clay

OnedaywhenthecartooncharacterDrabblecongratu-

latedhisbossforbeingthefirsthumanbeingeverto

failtheTuringtest,

“Turingtest

”becamethemost

searchedwordonGoogle.Thiswasatestamenttothe

popularityofDrabbleandacluetotheZeitgeistof

newspaperreaders.

Sohereweareatoneofthemostentertainingand

evenusefulunintendedconsequencesofagreatsearch

engine—Zeitgeist.Googlemakesitpossibletogauge

whatagreatmanypeoplearethinkingaboutandpossi-

blyconsideringdoingatany

onetime.Thesenseof

anonymityoftheInternetengendersanastounding

leveloffrankness.

ThewordZeitgeistcomesfromtheGermanlanguage,

buttracesitsrootstoLatin.Itisatranslationofgenius

seculi.GeniusistheLatin

wordfor“guardianspirit,”andseculimeans“ofthecentury.”Thewordhascometo

describetheintellectualandculturalclimateofanera.

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GoogleByAnyOtherName75

Inthepast,writerssuchasF.ScottFitzgeraldand

artistslikeSalvadorDalihavecapturedZeitgeist,but

neverbeforehastherebeensuchanaccurate,to-the-

momentscientificmeasureastheonecreatedby

Google.

GoogleZeitgeist,inseveralforms,tracksallthe

searchesdoneonthewebsiteandranksthembyfre-

quencyofsearch.HotTrends,introducedin2007,lists

the100mostactivequeriesatanymoment.Thereisa

monthlylistandagrande

annuallist.

Attimes,ourZeitgeistseemsshallow,withsearchers

trackingcelebrities,celebrityrumors,andquestions

suchas“WhoisBuckethead?”Thereareindicationsthat

themajorityofsearchersareyoung,sincenameslike

singerBritneySpearsand

HighSchoolMusicalstar

VanessaHudgensfigureprominently.

Evenso,somepracticalsearchersaskhowtocro-

chet,howtoflirt,orwhendaylightsavingtimebegins.

Enigmatically,“howto

levitate”showsup,too.

In2008,Republicanvicepresidentialcandidateand

AlaskaGovernorSarahPalinheadedtheZeitgeistlist

worldwide.NextrankedwastheBeijingOlympics,with

thepresidentialcandidateBarackObamacomingin

sixth.

Despitetheflimsyandtransitorynatureofsearch

queries,authorJohnBattellecallsZeitgeistthedata-

baseofintentions,aremarkableanthropologicaldevice

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GOOGLESPEAKS

ofourtimes.Google’sownwebsitedeclares,“Whatyou

seehereisacumulativesnapshotofinterestingqueries

peopleareasking,overtime,

withincountrydomains

andsomeonGoogle.com—thatperhapsrevealsabitof

thehumancondition.”AnyonecanlogontoGoogle.com

andcheckonwhat’supalmostanywhere.

OnelessonfromobservingZeitgeististhatGoogle

doesnotsettaste;ratheritmeasuresit.Ittellsusthe

silly,sad,andsometimesshockingtruthaboutourselves

andwhatweactuallydoontheInternetasitresponds

toourqueriesandtranslatesthatintorelevantsearch

results.

Googleregularlyholdsinvitation-onlyGoogleZeitgeist

Conferencesaroundtheworldsothatthoughtleaders

candiscussandponderthespiritofthetimes.David

Cameron,controversialheadoftheBritishConserva-

tiveParty,waskeynote

speakeratboththe2006confer-

enceinEuropeandthe2007conferenceinSan

Francisco.CamerondescribedtheInternetrevolution,

andGoogle’srole,asthenextstageofsocietaldevelop-

ment,beginningwithfeudalism,andthenfromcentral-

izedstatebureaucracytooneofenormousindividual

influenceandcontrol.Cameronwelcomedthestruggle

betweenindustryleadersandgovernmentstodefine

anddirecttherevolution,quotingEdmundBurkefrom

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GoogleByAnyOtherName77

200yearsago:“Thereciprocalstruggleofdiscordant

powerswilldrawouttheharmonyoftheuniverse.”5

DespiteGoogle

’srevelations,thereremainssome-

thingmysteriousandmagicalaboutZeitgeist.Eventhe

mostcreativepeopledon’tknowwhereitcomesfrom.

GeorgeBernardShawoncesaid,“WhatIsaytodayeve-

rybodywillsaytomorrow,thoughtheywillnotremem-

berwhoputitintotheirheads.Indeedtheywillberight

forIneverrememberwhoputsthingsintomyhead,it

istheZeitgeist.”

(Note:Bucketheadisamutantguitarvirtuoso,American

BrianCarroll,whowearsawhitebucketonhisheadwhile

playingmusic.)

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ACompany

IsBorn

Sergeysaysthatluckplayedabigpartintheearlysuc-

cessofthecompany:“Webecameprofitablejustasthe

market(forInternetstocks)tanked.Ifwehadstarted

sixmonthslater,itmight

havebeenadifferentstory.”1

RajeevMotwani,theStanfordprofessorwhoadvised

graduatestudentsLarryandSergey,remembershowit

allhappened.TheWorldWideWeb,hesaid,wascom-

ingintoitsown:

SergeyBrinandLarryPagewererunningasearch

engineoutofStanford.These21-year-oldswouldcome

inandmakedemandsonme

—weneedmoredisk

spacebecausewe’recrawlingtheWebandit’sgetting

bigger,weneedtobuymoredisks....I’dgivethem

moremoneyandthey’dgobuymoredisks.Atsome

78

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ACompanyIsBorn79

pointtheseguyssaid,wewanttodoacompany.

Everybodysaid,youmustbeoutofyourminds.There

arelike37searchenginesoutthereandwhatareyou

guysgoingtodo?Howareyougoingtoraisemoney,

howwillyoubuildacompanyandthesetwoguys

said,we’lljustdoitandtheywentoffanddidit.

ThenextthingMotwaniknew,thepairhadbuiltaglo-

balenterprise.“It’sjustamazing,justfeelslikeapartof

alittlebitofhistoryandIcontributedalittlebittothat

history.NowIhavebecomeastart-upjunkie.”2

Atfirst,theytriedandfailedtoselltheirtechnology.

Atthatpoint,PageandBringaveupandreturnedto

theirresearch.Theyknewtherewasstilllifeintheidea

andfollowedDavidFilo

’sadvicetobegintheirown

company.

YAHOO!DREWTHEMAP

TheparallelsbetweenYahoo!andGooglearealmost

spooky.TwoboredPh.D.candidatesatStanford,looking

forawaytowinafantasybasketballleague,cameup

withtheideaforYahoo!.JerryYangandDavidFilowon

thesportspool,andnotlongafterwardrealizedthey

hadcreatedsomethingwitheconomicpotential.They

tookawhimsicalandfun

approachtobusiness,andin

namingtheircompanytheystartedwiththeInternet

jargonfor“yetanother,”YA.Theycameupwiththerest

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GOOGLESPEAKS

ofit:YetAnotherHierarchicalOfficiousOracle.Yahoo!

wasborn.

•Yahoo!’smaingoalwastohelptheirStanford

buddieslocateintriguingwebsites.

•Thesystemuses“content-based”search.

•Yahoo!earnsitsmoneyfromadvertising.

•Afterawhile,the20-somethingentrepreneurshired

a“grown-up”businessman,TimKoogle,tohelprun

anddevelopthebusiness.

Naturally,hewasaStan-

fordgraduate.

•Thecompanywentthroughastageofhypergrowth

andsuccess,launchinganIPOwithamultibillion-

dollarmarketcapitalization.

“Wewereunique,”saidYang.“Wewerethefirstin

this

businesstobuildacredible,sustainable,andlikeable

brand.IfyoubelievetheInternetisthenextbigmedium,

andifyourealizeeverymediumhashadabrandassoci-

atedwithitlikeCNNwith

cable,thenit’sconceivablethat

Yahoo!willbecomeoneofthosebrands”.3

Yahoo!wasformedaboutfiveyearsbeforeGoogle

camealong,andinmanyways,therelationshipbetween

thetwocompaniesgoesway

backandwasclose.Google

pitchedYahoo!onbuyingthesearchengine,butwere

sentawaywithnothingmorethansoundcounsel.Yahoo!

soonchoseGoogleasitsdefaultsearchengine,anda

daylater,Yahoo!purchasedeGroupsfor

$413million,

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ACompanyIsBorn81

acompanythatLarry

’sbrother,CarlPage,helpedto

found.Forawhile,startingin

June2000,Google’sand

Yahoo!’spathswerelinked.Providingsearchresultsfor

Yahoo!andotherwebsitesgotGoogleofftoastrongstart.

Beforelong,Googlebegantolooklikeacompetitor,and

eventuallyYahoo!droppedGoogleanddevelopedits

own

searchtechnology.

Sadly,afteraterrificallysuccessfulrun,Yahoo!fell

victimtoahorrendousbusinessblunder.Microsoft

madeabigofferforthecompanybutdroppeditwhenit

consideredYahoo!’scounteroffertoohigh.TheGoogle

founderswantedtohelpYahoo!remainindependentand

struckanadvertisingarrangement.However,Google’s

helpturnedouttobenohelpatall.Readmoreabout

thatinthesectionentitled“Google,Microsoft,andthe

InternetCivilWar,”inthechapter“TheDominantPower

intheIndustry?”

THEREQUISITEGARAGE

Thestoryofahigh-techcompanystartingina

Califor-

niagarageisaclichéforsure.Perhapsitisarequired

steponthepathtosuccess.Asfarbackas1938,Stan-

fordgraduatesBillHewlettandDavePackardbegan

theircompanyinaPaloAltogarage.SteveJobsand

SteveWozniakbuilttheirfirstApplecomputerina

garageinthenearbycommunityofLosAltos.

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GOOGLESPEAKS

WhenGooglehadtomoveoutofGates360,their

Stanfordgraduateschooloffice,andLarry

’sStanford

dormroom,PageandBrinrentedasparebedroomand

garagespaceinthehomeofSergey’sgirlfriend’ssister,

SusanWojcicki.Wojcickiinsistedthattheyenterthe

housethroughthegarage.

“It’saveryhumblehouse,lessthan2,000squarefeet,”

Wojcickisaidof232SantaMargaritaAvenue.4Wojcicki

boughttheMenloParkresidenceshortlyafter

earning

herMBAin1998.Thepurchasepricewasabout$600,000.

Sherentedpartofittohelpcoverthemortgage.The

four-bedroomranch-stylehouseonatree-linedstreet

provedconvenientfortheyoungentrepreneurs,since

itcamewithawasher,dryer,hottub,andparking

spaces.

JusteightyearsafteritsbeginningonSantaMarga-

ritaAvenue,Googlepurchasedthenow-historicprop-

erty.Googledidnotrevealthepriceitpaid,butthe

valueofthetrulymodesthouseby2006wasestimated

at$1.2million.

Aniceprofitonrealestateisn’tallthatSusanWojcicki

gotfrombeingthelandlady.Shetookanearlyjobatthe

companyandnowisoneofGoogle’shighest-ranking

executives.

In1999,shebeganasGoogle’sfirstmarketingpro-

fessional.Backthen,shewasresponsibleforawide

rangeofactivities,includingestablishingthecorporate

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ACompanyIsBorn83

identityandcreatingsomeofthefirstholidaylogos.She

alsomanagedthelicensingofWebsearch,sitesearch,

andenterprisetoGoogle

’sfirstcustomers,andwas

responsiblefortheinitialdevelopmentofGoogle

Image

Search,BookSearch,andVideoSearch.ShenowisGoo-

gle’svicepresidentofproductmanagement,responsible

forGoogle

’sadvertising,monetization,andmeasure

-

mentplatformsproducts,includingAdWords,AdSense,

andGoogleAnalytics.

SeveralofSusan’sfamilymembershaveworkedat

Google,includingherhusband.DennisTroperisan

operationalexecutive.Eventually,Susanalsobecame

SergeyBrin’ssister-in-law.

Inlessthanayear,Googleoutgrewthegarage.With

eightemployees,itmovedintorealofficespaceonUni-

versityAvenueinPaloAlto.

THEVENTURECAPITALISTS

StanfordprofessorDavidR.CheritonjoinedYahoo!

’s

DavidFiloinurgingPageandBrintoconsiderbecoming

entrepreneurs,butCheritonwentonestepfurther.He

hookedtheGoogleboysupwithaninvestorheknew.

LateonenightinAugust1998,Cheritone-mailedAndy

Bechtolsheim,afounderofSunMicrosystemsandone

ofSiliconValley

’smostsuccessfulventurecapitalists.

Bechtolsheimimmediatelyresponded,suggestingthey

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GOOGLESPEAKS

meetthenextmorningateighto

’clock.Hepassed

Cheriton’shomeonhiswaytoworkeachday.

Cheriton,aCanadian

-bornand

-educatedcomputer

scienceprofessor,hasbecomeabillionaireasaresultof

hisinvestmentsintechnologycompanies.Cheriton

co-foundedGraniteSystemswithAndyBechtolsheim,a

companythatdevelopedgigabitEthernetproducts.Cisco

SystemsacquiredGranitein1996.Cheritonlaterbecame

co-founderofBechtolsheim

’s2001startupcompany,

Kealia,whichwasacquiredbySunMicrosystemsin2004.

BythetimehemetPageandBrin,Bechtolsheimhad

alotofexperienceinstartingcompanies.Inadditionto

hisworkwithCheriton,hewasaco

-founderofSun

Microsystems.Heknewhiswayaroundsoftware,the

Internet,andSiliconValley.Lounginginthemorning

sun,BechtolsheimwatchedSergeyandLarry

’sdemo

forGoogleandimmediatelywrotea$100,000checkto

helplaunchthecompany.

BrinandPagecelebratedtheaffirmationoftheir

workwithbreakfastat

BurgerKing.“Wethoughtwe

should[eat]somethingthattastedreallygood,thoughit

wasreallyunhealthy,”Pagesaid.“Anditwascheap.It

seemedliketherightcombinationofwaystocelebrate

thefunding.”5

Buttherewasahitch.Bechtolsheim

’scheckwas

madeouttoGoogleInc.,acompanythatdidnotyet

legallyexist.ThechecklayinLarry’sdeskdrawerfor

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ACompanyIsBorn85

severalweeksasheandSergeysetupacorporation

undertheGooglename.Theyalsosoughtotherinves-

torsamongfamily,friends,andacquaintances.Ulti-

mately,theycobbledtogetherabankrollof$1million.

StagetwoofGoogle

’sfinancialevolutioncameon

June7,1999—again,rightinthemiddleoftheSilicon

Valleybubble

-burst.Googlegotitssecondbigpush

offundingfromanunusual

partnershipoftwoleading

venturecapitalfirms,SequoiaCapitalandKleiner

PerkinsCaufield&Byers.Usuallythesetwocompanies

arefiercecompetitors,butinGoogle

’scase,itwas

different.Their

representatives,JohnDoerrandMichael

Moritz,bothtookseatsontheboardofdirectors,

expertisethathelpedLarryandSergeymovethecom-

panyrapidlyintherightdirection.Amongotherthings,

DoerrhelpedSergeyand

LarryfindtheirCEO,Eric

Schmidt.

DoerrhadanearlycareerwithIntelandmovedinto

venturecapitalin1980.Hehasdirectedessentialfund-

ingtosomeofthemostsuccessfulcomputerandInter-

netcompaniesanywhere,includingCompaq,Symantec,

SunMicrosystems,Amazon,andIntuit.

Doerrsaysthatseveralfactorsattractedhimto

Google.“YoucouldseeGooglewasgrowingrapidly,”he

said.Additionally,therewastechnicalexcellence;Larry

andSergeywantedtoassembleagoodmanagement

team.Theyweregoingafteraverylargemarket,and

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GOOGLESPEAKS

“theyhadasenseofurgencyaboutthem.”Andonepar-

ticularcharacteristicthatDoerrliked:“Theywerenerdy

whitemales,dropoutswithnosociallife.”6Again,Larry

andSergeywentofftoBurgerKingtocelebrate.

Onlyayearlater,Googlegotitsbreakwhenoneof

theirprofessorsandanotherSiliconValleyventurecapi-

talistgavethemstartupmoney.Thatsameyear,articles

praisingtheinfantGoogle

searchengineappearedin

USATodayandLeMonde.Soon,PCmagazinenamedGoogleoneofitsTop100WebSitesandSearchEngines.

WhileDoerrisoneofthemostinfluentialdenizensof

SiliconValley,healsohasinvestedinfailures.

“John

Doerrthrowsbigdartsatdistanttargets,

”saidJerry

Kaplan,aSiliconValleyentrepreneurwhosestartupsin

theearly1990s,GoCorporationandOnsale.com,were

flopsbackedbyKleinerthroughDoerr.“Mostmiss,but

whentheyhit,it’sspectacular.”7

TheGoogleinvestmentwasworththerisk.KleinerPer-

kinsandSequoiaCapital’s$25milliongotthem20percent

ofGooglebackin1999—asofNovember2008,Google’s

marketcapitalizationstoodatabout$108billion.

THEELUSIVEBUSINESSPLAN

TheGoogleguysinitiallyhadaroughtimecomingup

withaworkablebusiness

plan.In1999,thecompany

wasburningthroughitsventurecapitalreserveswithout

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ACompanyIsBorn87

aclearstrategytogeneraterevenues.Itwasn

’tuntil

early2001thattheycameupwiththeconceptthat

wouldwork.

Asmuchastheydislikedtheidea,LarryandSergey

realizedthatadvertisingwasanecessarypartoftheir

businessmodel.Eventually,

Google

’smanagement

understoodithadtwocorebusinesses,searchand

advertising.Searchoriginallywasatechnology,nota

business,butbyservicingothersites,suchasYahoo!

andAOL,itconvertedtoa

business.Searchhasgradu-

allymorphedintoaportalaswell,awebsitefromwhich

userscanestablishahomepage,Gmail,andlegionsof

otherconveniencesthatconnectthemtotheInternet

butalsokeepthemwithinGoogle.Advertising,everybit

ascomplexandimportantassearch,providesabout99

percentofGoogle’sincome.

MostGooglersnowseetheorganizationasa

technology-drivenmediacompany.Googleisn’tsodif-

ferentfromamagazine,newspaper,ortelevisionsta-

tion.Contentorprogramming,orinGoogle

’scase,

search,isthelure.Advertisingconnectedtotheservice

providestheincome.Manygreatfortunes,including

thoseofTedTurner,MichaelBloomberg,andSteve

Forbes,

havebeenbuiltonadvertising.

Nevertheless,astimewenton,Google

’sbusiness

planseemedmoreandmoremysterious,evenchaotic.

Intel’sAndyGrovehas

applaudedapparentchaosasa

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GOOGLESPEAKS

waytoobscureunderlyingintent,andifthatisGoogle’s

goal,ithastosomeextentsucceeded.

INVESTINGINWILDIDEAS

Googlehastriedtobranchinto,amongotherareas,a

WiFideveloperforcities,amajorinvestorinrenewable

energy,greenvehicles,and,strangestofall,asemi

-

biotechcompany,23andMe.Itisunderstandablewhen

Googleinvestsinanytechnologythatbroadensitsabil-

itytosellads,anditmaybesmarttoinvestincheaper

electricalenergy,sinceGoogle’sbusinessisso

depen-

dentonhavingareliablepowersource.Genetictesting,

however,doesn

’tseemtohaveanyrelationshipto

Google’scorebusiness.

JanetDriscollMiller,

presidentandCEOofSearch

Mojo,asearch

-enginemarketingcompany,wrote:

“23andMewasco-foundedbyAnneWojcicki,newbride

ofGoogle

’sSergeyBrin,sotheinvestmentislikely

drivenmorebynepotismthanbythedrivetobuild

Google’sbusinessportfolio.”8

TomForemski,whowritesaboutbusinessandculture

inSiliconValley,suggeststhatwhileGoogle’sinvestmentin

suchcompaniesas23andMe

islegal,itmaybeunethical:

InvestorscannotpressureGoogletomakemoneyfrom

thosebusinessgroupsbecausetheirsharescarrymini-

malvotingrights.Google’sfoundersdeliberatelysetup

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ACompanyIsBorn89

twoclassesofshareswhentheylaunchedthepublic

company,sothattheycouldmakedecisionsindependent

ofshareholders(fellowowners)wishes.9

Asitwarneditwouldinthe

IPOprospectus,Googlealso

expendsalotofenergyandresourcesonhigh

-risk

productsthatdon

’talwayssurvive.NationalPublic

RadioMarketplacehost,KaiRyssdal,talkedtoFortune

magazine’sAdamLashinskyaboutGoogle

’srisk

-and-

failurestrategy:

ADAMLASHINSKY:Yeah,you’vegottaremember,thisisa

companythatwasstartedby

two,20-something-year-

oldsandfromthebeginningtheGooglecofounders

nurturedacultureofbothinnovationontheonehand

andchaosontheotherhand.Theywerejustgonna

hanglooseandplayvolleyballandgorollerblading

andhavemassagesoncampusandmakeniftystuff

up.Well,thatwastremendousonce.Butitisn’tneces-

sarilyaprovenwaytobuildabusiness.

RYSSDAL:Seemstomewhattheyhave,actually,isvery

narrowlycontrolledchaos,whichifyouthinkaboutit

isnowaytorunabillion-dollarbusiness.

LASHINSKY:Well,narrowlycontrolledchaos—orman-

agedchaos,whichiswhattheycallit

—isexactly

whattheyaretryingtodo.Theywanttoencourage

zaniness.Ontheotherhand,theywanttofigureout

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GOOGLESPEAKS

awaytocontrolthezaniness.It’saradicalconcept.

It’ssomethingeverybodywouldliketodo.Youknow,

it’slikework

-lifebalanceinourpersonallivesand

careers.That’swhatthey’retryingtodointheshellof

a$125billionmarket-valuecompany(in2006).

RYSSDAL:Allright,that’sgreat.They’vegotthisculture

whereanythinggoesandyoucanlearnfromyour

mistakes.Doyouevergetfired,though,fromGoogle?

Imean,I’veneverheardof

anybodylosingtheirjob

there.

LASHINSKY:Infact,oneofGoogle’smostseniorexecu-

tivesSherylSanberg,who’savicepresidentandruns

alloftheautomatedadvertisingsystemsthatGoogle

has,toldmeaboutamultimillion-dollarmistakethat

shemade.Andwhensherealizedhermistakeshe

walkedacrossthestreetattheGoogleplexinMoun-

tainViewandshetoldcofounderLarryPageaboutit.

Whatwasinterestingwashisreaction.Hesaid,“Yeah,

weshouldn’thavedonethat.We’llknowbetternext

time.But,oh,bytheway,it’sgoodthatyoumadethis

mistake.I’mglad,”hetoldher,“becauseweneedtobe

thekindofcompanythatiswillingtomakemistakes.

Becauseifwe’renotmakingmistakes,thenwe’renot

takingrisks.Andifwe’renottakingrisks,wewon’t

gettothenextlevel.”10

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GOODIDEASPUTTOGOODUSE

Whilesomeofitscorporateventuresseemofftarget,

manyofGoogle

’scharitableandpublic

-spiritedgood

worksoftenfeedintoitsbusinessneeds.

OnesuchprojectwasGoogle’sstudentbusinessplan

competitioninless

-developedareasoftheworld.In

2007,studentsworkedinteamstocreateaviableInter-

netbusinessplanforUkraine.Theideawastohelp

supportandgrowInternetandonlinebusinessesinthat

country.Thewinningproject,turnedinbytwostudents

fromtheInstituteofInternationalRelations,wascalled

“InteractiveTourGuidearoundUkrainianCities.”

Similarcompetitionshave

beenheldinAfricaand

otherregions.ItisinGoogle’sbestinteresttohavemore

peopleonlineandsurelysurfingtheWebusingGoogle.

Additionally,

Google.org,itsphilanthropicarm,

investsmillionsofdollarsin

projectstodevelopcost-

effectivealternativeenergysources,somethingGoogle

dearlywishesforinordertokeepitsenergy-gulping

serverfarmsrunning.

DEALINGWITHDARKMATTER

Whenthe2008recessionhit,

Googlewatcherswere

shockedtolearnthatthecompanywouldbelayingoff

upto10,000employees,nearlyhalfitsworkforce.

Almostallofthoseatrisktogowerecontractworkers.

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GOOGLESPEAKS

“Thereisnoquestionthenumberofworkersistoo

high,”saidBrin.11

EricSchmidtdescribedthecompany’sreactiontothe

economyasdealingwithdarkmatter.Still,Google

was

inanexcellentpositiontobenefitfromtheglobaleco-

nomicslumpforseveralreasons:

•Duringsuchtimes,weakercompaniesdisappear,

andthestrong,survivingcompanieseitheracquire

thefailingcompaniesorseizetheirmarketshare.

•Googlehadalargeamountofcashonhand.

•Accordingtosomeexperts,onlineadvertisingmay

notbeasstrongasexpected,butitwillcontinueto

grow.Themarketing

-researchfirmeMarketers

predictedthatInternetadvertisingwouldgrowby

8.9percentin2008,ascomparedwiththeoriginal

predictionof14.5percent.

•Googlecantaketheopportunitytofine-tuneits

productline,cherrypicking

thestrongandpotentially

profitableprojectsanddeletingthoselesslikelytoadd

significantlytothebottomline.Googleimmediately

announcedthatitwoulddropitsLively

-3DAvatars

andRooms,avirtualworld,andSearchMash,an

experimentalsearchengine.

Withastrongrevenuestreamandplentyofroomto

trimdown,Googlecouldemergefromeconomichard

timesstrongerandwiser.

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AVERSIONTOADVERTISING

Whentheyfirststartedout,PageandBrinhada

distasteforusingadvertisingasthefoundationfor

theirbusinessplan.Inan

academicpaperthatthetwo

wrotewhilestillatStanford,theysaidthat“advertising-

fundedsearchengineswillinherentlybebiased

towardtheadvertisersandawayfromtheneedsof

consumers.”12

Itwasseveralyearsbefore

theychangedtheirtune

andacceptedthefactthatadvertisingwastheonlyway

tobecomeaprofitablecommercialenterprise.Once

theyacceptedthenotion,theywentforwardwithwhat

soonbecameanextremelysophisticatedadvertising

plan.TheGoogleguyscametoviewadvertisingasan

importantservicetoconsumers.

“Welookatadsas

commercialinformation,andthatgoesbacktoourcore

missionoforganizingtheworld’sinformation,”explains

OmidKordestani,vicepresidentofGlobalSales.13

Tomaintaintheirsenseofintegrity,advertisingis

alwaysclearlyidentifiedas“sponsoredlinks”atthetop

ofthesearchlisting,andGoogledoesnotacceptpop-up

advertising.

Thesimpletextadsthatappearatthetopandinother

placesinGooglesearchresultsaccountforalmostallof

thecompany’srevenue.Asanindicationofhowlucra-

tiveadvertisingis,in2007Googlehadannualrevenues

of$16.6billion,with$4.2

billionofprofit.

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Ifallgoesaccordingtoexpectation,advertisingreve-

nueswillonlygetbetter.

Americansnowspendanequal

numberofhourseachweekwatchingTVandsurfing

theInternet.YettheInternetcurrentlygetsonlya

smallpercentageoftheadvertisingdollars.Procter&

Gamble,thelargestadvertiserintheUnited

States,has

anadbudgetof$5.2billionayear.Lessthan2percent

ofitsmeasuredadbudgetisspentonline;thevast

majorityisfortelevisionspots.

Yetlargebusinessesmayverywelladvertiseonthe

Internetmoreandmore.Onlineadvertisingisexpected

togrowata19.5percentcompoundannualgrowthrateto

$120billionby2012.Bythen,theInternetisexpected

tohandle19percentofglobaladvertising,compared

withonly10percentin2007.14

Googleadrevenueswillgrowbothorganicallyand

byacquisition.IncompetitionwithYahoo!,Microsoft,

andtheadvertising

-marketinggiantWPP,Google

boughttheonlineadvertisingandmarketingcompany

DoubleClick.DoubleClickclaimstohandleabout12

billiontransactionseachday.

The

$3.2billionpurchaseofDoubleClicksparked

complaintsthatGooglewas

becomingtoodominantin

theadvertisingindustry.Itwassuchconcernsthat

squelcheda2008cooperativedealbetweenYahoo!and

Google.(ThereismoreontheYahoo!-Googledealin

thesection“TheBattleofYahoo!”inthechapter“The

DominantPowerintheIndustry?”)

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ACompanyIsBorn95

ThatcriticismhasnotslowedGoogle

’sexpansion

intootherformsofadvertising.Ithasmarketedadsfor

newspapers,radio,andothertraditionalmedia.Despite

itsearlydislikeofadvertisingandclaimsthatitsbusi-

nesswaspurelysearch,evenEricSchmidtsincehas

admitted,“Weareintheadvertisingbusiness.”15

ADVERTISINGTHATDELIVERSRESULTS

Mylight-bulbmomentwaswhereIrealizedthatrelevancywas

king.IreallysawitplayoutwithGoogle...itwasabiglearn-

ingcurve.16

—PenryPrice,Google’svicepresidentforadvertising

forNorthAmerica

Theideathatadvertisingsellsbestwhenitispertinent

tosearchresultshelpedLarryandSergeycometoterms

withtheirbusinessmodel,

anditalsodeliveredtheeco-

nomicpayload.Advertiserslikedthehighlytargeted

ads,andsearchersweremorelikelytoclickonanadif

itpertainedtowhatevertheywerethinkingaboutwhen

theytypedwordsintothesearchbox.

“Ithinkthebeautyofthesearchmodelistheonething

weknowisyourintent,”explainedTimArmstrong,senior

vicepresidentforGoogle’sNorthandLatinAmericaadver-

tising.“There’sachancethatwe’regoingtobeabletogive

youtherightinformationattherighttime—therightadto

therightuserattherighttimewiththerightoutcome—

becauseit

’saveryself

-directedformofadvertising.

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Googledoesn’tneedtoknowwhotheenduseristobe

successfulinadvertising.”17

GooglewasnotthefirstSiliconValleycompanytocap-

italizeonthenotionthatrelevancymattered.Google’s

advertisingapproachwasmodeledafterthatusedby

GoTo.com,whichallowedadvertiserstobidtohavea

linktotheirwebsitelistedinthesponsoredareawhenever

someonesearchedforcertainkeywords.Ratherthanhire

GoTotohandleitsadvertising,however,Googlewroteits

ownsoftwareandadaptedtheGoTomodeltoitsownuses.

GoTowasrenamedOverture

andsoldtoYahoo!.

OverturebecameabitterrivalfromwhichGoogleseized

theAOLadvertisingaccount.Yahoo!suedGooglefor

copyrightinfringement,adisputethatwassettledoutof

court.(Formoreinformation,

gotothesection“Law-

suitsEverywhere”inthechapter“GoogleGrowsUp.”)

TWOWAYSTOADVERTISE:ADWORDS

ANDADSENSE

Google’sadvertisingprogramhastwodistinctsegments:

AdWords,forthosewishingtoadvertiseaproductor

service,andAdSense,forwebsiteswishingtogetpaid

fordisplayingads.

Launchedin2000,AdWordsisGoogle

’sflagship

advertisingproductand

primarysourceofrevenue.The

pay-per-clickadvertisingincludestextandbannerads.

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Inthebeginning,advertiserspaidasetmonthlyfeefor

Googletosetupandmanagetheircampaigns.AdWords

soonbecamesomethingquitedifferent—aself-service

portal,ado

-it-yourselftoolthathelpedmyriadsmall

businessesgetnoticed.

Inthissecond-generation

service,advertisersbidboth

onwordsthatshoulddelivertheiradsandonthemaxi-

mumamounttheyarewillingtopayperclick.Whilethe

processisshroudedinmystery,onefeatureclearly

appealstoadvertisers.GoogleusesaVickeryauctionsys-

tem,inwhichwinningbidderspayonlyonecentmore

thansecond

-placebidders.Thisgivesadvertisersthe

couragetobidhigh,knowingthattheywillnotbepenal-

izediftheyarefarabovethemarket.

WhenauserGooglesthebid-uponword,ads,also

called

creativesbyGoogle,areshownas

“sponsored

links”atthetoporontherightsideofthescreen.Ifthe

adisappealingenoughto

inspireasearchertoclickon

it,theadvertiserpaysGoogleforeveryclick.

Thebidpricehelpsgetadstopplacementonweb-

sites,butthatisnottheonlyfactor.Theadcanachieve

toplistingonlyifitappealstoenoughWebsurfers.The

adisassigneda“qualityscore.”Thequalityscoreiscal-

culatedbyhistoricalclick-throughrates,relevanceof

anadvertiser

’sadtextandkeywords,anadvertiser

’s

accounthistory,andotherfactorsGooglefindsrelevant.

ThequalityscorealsohasbeenusedbyGoogletoset

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GOOGLESPEAKS

theminimumbidsforanadvertiser

’skeywords.The

minimumbidwasmeanttofilteroutlow-qualityads,

althoughtherearereportsthatGooglesoonwilldrop

theminimumbid.

“Weliterallybuymillionsof

searchterms,”saidBetsy

Lazar,anadvertisingexecutiveatGeneralMotors,the

nation’sfourthlargestadvertiser.Forexample,“Chevy

Detroit,Chevy,fuel-efficientvehicles.”18

SuitcasedesignerHeys

Internationalbuiltmuchof

itsbusinessonWebadvertisingandhasbeenhighly

successful,thankstoGoogle.“It’shelpedalotofyoung

innovativecompanieslikeourselvesgetworldwide

attentionthatwecouldn’thavegottenifitwas[not]for

searchengineslikeGoogle,”explainedHeysfounder,

EmranSheikh.19

AliceBowe,aBritishgardendesigner,paysGoogleso

thatwhenanyonewithin50milesofherbusinesstypesin

“gardendesign,”hersiteshowsup.“Iknewnothingabout

computers,oranyofthatsortofthing,”sheexplained.

“Butit’sreallyeasy.Youcantypeinasmanydifferentver-

sionsofthead,anditwillautomaticallytrythemout,then

showtheonesthatdobestmoreoften.”20

Google’sTimArmstrongpointsout,“Wehavecus-

tomersthatmanagetheirindividualadcampaigns

everyday,multipletimesadayandimprovethemevery

day,multipletimesaday.”21

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Beyondthatbasicservice,Googlethenextendedthe

ad-linkconceptsothatwebsitesautomaticallydisplay

adslinkedtotheirtext.AdSensetechnologycan

instantlyanalyzethetextofanysiteanddeliverrele-

vantadvertising.

Web-siteownersusetheAdSenseprogramtoearn

moneyfromtext,image,andmorerecently,video

advertisementsontheirwebsites.Formanywebsites,

AdSenseistheirmainsourceoffinancialsupport.The

advertisementsareadministeredbyGoogleandgener-

aterevenueoneitheraper

-clickorper

-impression

basis.Theprogramhasbeen

agodsendforsmallweb-

sitesthatdon’thavetheresourcesforhiringasalesstaff

anddevelopingadvertisingsalesprograms.

AcompaniontotheregularAdSenseprogram,

AdSenseforSearchallowstheplacementoftheGoogle

searchboxonwebsites.WhenausersearchestheInter-

netorawebsiteusingthesearchbox,Googlesharesany

advertisingrevenueitmakesfromthosesearcheswith

thewebsiteowner.However,thepublisherispaidonlyif

thesearcherclicksonanadonhispage.

Google’sadvertisingsystemispopular,butitisn

’t

perfect.Clickfraudhasbecomeacommonpractice,a

subjectthatisexploredinsectionsahead.

AdWordshascomeunderfireforallowingdvertisersto

bidontrademarkedkeywords.In2004,Googlestarted

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GOOGLESPEAKS

allowingadvertiserstobidonawidevarietyofsearchterms

intheUnitedStatesandCanada,includingthetrademarks

oftheircompetitors,andinMay2008expandedthispolicy

totheUnitedKingdomandIreland.Advertisersare

restrictedfromusingothercompanies’trademarksintheir

advertisementtextifthetrademarkhasbeenregistered

withGoogle

’sAdvertisingLegalSupportteam.Google

requirescertificationtorun

regulatedkeywords,suchas

thoserelatedtopharmaceuticals,andsomekeywords,such

asthoserelatedtogamblingandhacking,arenotallowed

atall.Theserestrictionsmayvarybylocation.

SinceJune2007,GooglehasbannedAdWords’ads

forstudentessaywritingservices,amovewelcomedby

universityprofessors.

EXTENDINGTHEGOOGLEREACH

Googlehasbeenhighlyexperimentalwhenexploring

thefieldofadvertising.ItranatestintheChicagoSun

Times,sellingboxadsfornewspapers.Theprogram

utilized“remnantspace,”unsoldspacewherethepaper

otherwisewouldrunhouseads.

Google’sYouTubeisahugesuccesswithusers,but,

sofar,Googlehasnotfoundawaytomakemoneyfrom

thesite.Videoadvertisingcouldbetheanswer.Evenas

itwasengagedinalawsuitwithViacom,Googlestruck

adealtotestinsertingadsintovideoclipsofViacom

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programs.Italsowillrunadvertisingalongwithsome

ofCBS’sprimetimeshowsandsoapoperas.

Onlinevideogamers,ofwhomthereareabout200

million,maysoonfindlotsofcommercialspotsontheir

favoritevideogames.

THESCIENCEOFADVERTISING

Googlecontinuestodevelopfeaturesthathelpadvertis-

ersanalyzeandunderstandtheirtargetaudiences,such

asGoogleInsightforSearch.Thisgimmickallowsany-

onetosearchonaword,product,service,andsoforth,

modifythesearchbygeography,seasons,andotherfea-

tures,andthenstudythesearchpatternsandvolumefor

thatsubject.Iftheadvertisersearchesthewordchili,for

instance,andasksforresultsforthestateofNewMexico,

agraphappearsshowingthatsearchesforthewordchili

peakeveryyearintheautumn,exactlyduringthenew

chiliharvest.Shealsocanseethatsearchesarethehigh-

estinthecityofAlbuquerque,althoughtheyalsohighin

Texas.Achilimerchantmayhavesuspectedthatresult,

butnowsheknowsforsure.It’sasomewhatprimitive

toolinthattheresultsaren’tverydetailed,butneverthe-

lessitcanbehelpfultomarketers.

GOOGLEDIDN’TADVERTISEITSELF—

ATFIRST

“Googlehasbuiltthemostloyalaudienceontheweb.

AndthatgrowthhascomenotthroughTVadcampaigns

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GOOGLESPEAKS

butthroughwordofmouthfromonesatisfieduserto

another.”ThisisfromGoogle’sCorporateInformation

page,andthecommentistrue.AtleastGooglenever

advertiseditselfinthetraditionalway,andits

aversion

toself-advertisingmaybedissolving.

LarryandSergeysentoutane-mailinthespringof

1998,whileGooglewasstillinthedevelopmentphase,

toalistcalledGoogleFriends.“Googlehasnowbeen

upforoveramonthwiththecurrentdatabaseandwe

wouldliketohearbackfromyou,”theywrote.“Howdo

youlikethesearchresults?Whatdoyouthinkofthe

newlogoandformatting?Dothenewfeaturesworkfor

you?Comments,criticism,bugs,ideas

...

welcome.

Cheers,LarryandSergey.”22

Theword-of-e-mailseemedtowork.Peopleresponded.

LarryandSergeysentoutanothere-mailinthesummer:

“ExpecttoseealotofchangesinGoogleinthenextfew

months.Weplantohaveamuchbiggerindexthanour

current24millionpagessoon.Thankstoallthepeople

whohavesentuslogosandsuggestions.Keepthemcom-

ing.HavefunandkeepGoogling.”23

Googlealsohiredamarketexperttocomeupwitha

planforpromotingitself.Theplanwouldcostabouthalf

themoneyGooglehadonhand.Companyleadersdecided

topass.“Marketingwould

havekilledthecompany,”said

SusanWojcicki,“becauseweweregoingtospendlike

fiveortenmilliondollars.Weonlyhadtwentymillion.

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ACompanyIsBorn103

Imagine,youcancutusinhalf;suddenlywewouldhave

hadtolookformoneyorwewouldhavehadtodoban-

neradsorsomething.Wewouldnothavehadtheluxury

thatwehadlateron.”24

Thatisn’ttosayGoogledidn’tspreadthenews

about

itself.Fromearlyinitslife,Googlepromoteditssearch

andsearch-adproductsthroughdistributiondealswith

softwarecompaniesandbycross

-promotingservices

likeGmailandGoogleBookSearchwithsearchadsand

viaitscorporateblog.

Googlealsoexcelledatpublicrelations.Earlyinits

life,GooglehiredCindyMcCaffreyasdirectorofpublic

relations.Sherecommendeda“pressfirst”approachto

promotion.Byfocusingonproductsandworkingwith

themedia,Googlewouldgetplentyoffreepublicityin

newsstories.

Bythespringof2008,Google’sgrowthhadslowedto

39percent,downfrom58percentayearearlier.In

responsetotheslowergrowth,thecompanygradually

begantoshiftitsviewsonself-advertising.

SomeGoogleemployeesapparentlysuggestedpro-

motingthecompanyonNBCduringtheOlympics,but

SergeyandLarrynixedthe

idea.However,inAugustof

thesameyear,Googlekickedoffanadcampaignin

Japanthatincludedoutdoorandonlineads.Thebrand-

ingcampaignwasnamed“100ThingsYouCanDoWith

Google.”Googledidnotadvertise,butsuccessfully

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GOOGLESPEAKS

placeddozensofstoriesinmajormediaaboutitstenth

birthday.RumorsflewthatGooglewastalkingwitha

NewYorkadvertisingagencyaboutanadcampaignin

thatcity.

BIRTHOFTHEGOOGLEECONOMY

Google’ssearchandadvertisingarrangementsgive

Googlebothprofitsandpower—ifitsalgorithms

demote

yoursite,yourvisitorsandyourrevenuewillshrivel.As

aresult,anarmyofconsultantshasarisenwhopromise

topushawebsiteupthesearchrankings,ornudgeany-

thingnegativeofftheall-

importantfirstpageofresults.

Thecircleofsearch-optimizationcompaniesbeganto

formaroundtheenterpriseandsoonasatelliteGoogle

economyemerged.

FormerGooglego-ferGingerFrankegottheidea

for

herbusiness,FrankeLifestyleManagement(FLM),after

Sergeyhurthisbackinatrapezeaccident.Sheordered

anewmattressforhimandwenttohisapartmentto

meetthedeliverytruck.Shesawcomicbooksonthe

shelvesandatatteredfutonandotherpersonaldetails

thathelpedherrealizehowlittletimeentrepreneurs

likeBrinhadtotakecareoftheirpersonallives.

Shegotheron-the-jobtrainingforherbusinessat

Google.“InFranke’sfirstyearsatGoogle,thecompany

hadasfewas50employeesandthepacewasfrenetic,”

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ACompanyIsBorn105

wrotetheNewYorkTimes,“soshequicklybecamea

jack-of-all-trades,doingeverythingfromfilling

bowls

intheofficewithM

&M’stoplanningcompanysales

conferencesthatseemedtotripleorquadrupleinsize

eachyear.”25

“Theseguyscouldn

’ttellmehowtodomyjob

becausetheyweretoobusybeingentrepreneurs,”said

Franke,whopreviouslyworkedatNetscape.“IfIwas

goingtosurvive,Iwouldhavetofeelandnotthink.”26

Eventually,Frankestarted

FLM,anexclusivecon-

ciergeservicecateringtoSiliconValley’shigh-techhigh

rollers.

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GoingPublic

Forcompanies,goingpublicisafundraisingevent.Forthe

culturesofthosecompanies,itchangeseverything.1

—MarcAndreessen,whoparticipatedinthe

initialpublicofferingsofNetscapeand

LoudCloud(nowOpsware)

Theinitialpublicoffering(IPO)hasbecomeaSilicon

Valleyritual,butlikesomeritualisticevents(Christmas,

forexample)itcangetoutofhand.

LarryandSergeyknewthatapublicstockoffering

wouldchangetheirpersonallives.Theworldwould

knowhowprofitableGooglehadbecomeandhow

wealthytheyhadbecomeaswell.Theirparents’and

theirownliveswouldbeinthespotlight,alongwiththe

attendantpleasuresanddangersoffameandwealth.

AsAndreessennoted,everythingthecompanydoes

—

everyquarterlyandannualearningsstatement,every

106

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newsrelease

—willbescrutinized,andwhenactual

informationisn’tavailable,gossipprevails.Additionally,

manyearly,keyemployeesbecomesowealthythatthey

graduallyleavethecompany.Theyeitherdon’tneedto

workandgoofftopursuepersonaldreamsortheynow

canaffordtostarttheirowncompanies.InGoogle

’s

IPO,morethanhalfofthe1,000mostlyyouthfulemploy-

eesweresuretobecomemillionaires.

Thefreedomandfunofbeingprivatelyownedis

gone.JeffSkoll,eBay’sformerpresident,recalls:

Beforewewentpublic,Iusedtosendoutacompany-

widejokeeachday,justasawayoflooseningthings

up.ThedayaftertheIPO,Isatdownatmycomputer

towritethatday

’sjokeandinwalkedthegeneral

counsel.Hesaystome,“Youknowthatjokeoftheday

thing?Ithinkit

’sveryfunny.

”“Gosh,thankyou,

”

Ireplied.“Well,stopit,”hesaid.“Weareapubliccom-

panynow,andwedon’twanttooffendanyone.Ifyou

wanttokeepsendingoutjokes,theycanonlybeabout

lawyers.”SoItriedsendingoutlawyerjokesfortwo

weeks—andthenIgaveup.2

Despitethedownside,theGoogleboysknewthatthe

timehadcomeandtheymusttakeaction.Theirven-

turecapitalistsandprivateinvestorsneededanIPOin

ordertogettheexpectedreturnontheirinvestment.

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GOOGLESPEAKS

AndGoogleitselfcouldusethecashanIPOcouldraise

tohelpitgrowtoitshighestandbestlevel.

ButLarryandSergeyhadbecomeusedtodoing

thingstheirway,andthewaytheywentpublicwasno

exception.True,theyhadreasontofeelaudacious.They

hadanadvantageoverotherhigh

-techstartupsthat

triedfloatingthemselvesonthestockmarket.Google

hadbeenupandrunningforfiveyearsandhadachieved

profitability,althoughtheyhadkeptthecompany’sdaz-

zlingprofitsfromsearch

-relatedadvertisingasecret

thusfar.

Thestakeswerehigh.Before

thepublicoffering,

financialexpertsestimatedthatGooglewouldbe

valuedat$30billionandthatLarryandSergeywould

beworth

$4billioneach.

3FinallyonApril29,2004,

GooglefileditsS1,therequiredSecuritiesandExchange

Commission(SEC)pre-IPOdocument.

Google’sregistrationstatementmadeabigsplash.

ManyinvestorswereonhighalertforsuccessfulSilicon

Valleycompaniesformedby

amazingyoungandcrea-

tiveminds.WhentheysawGoogle’sstrongrevenues

andprofits,theysuspectedthismightbethenextone.

Googlerevealedthatithadgeneratedrevenuesof

$961.9millionin2003andanetprofitof$106.5million.

Salesrose177percentfrom2002althoughearnings

increasedbyjust6percent.Googlealsoletitbeknown

thatithadbeenprofitablesince2001andwassittingon

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awarchestofawhopping$454.9millionincashand

cashequivalents.

Buttherewereunsettlingaspectstotheofferingaswell,

oneofthembeingtheearnest,seeminglynaïve,andeven

arrogant“founder’sletter”

thataccompaniedthefiling.

“WE’REDIFFERENT”

Itwasaneye

-openingpieceofwork,outliningan

unconventionalcompanywithambitiousplans.Larry

Pagehimselfauthoredtheletter,declaringthatGoogle

wasdifferentandintendedtostaythatway.

Pagetoldprospectiveshareholders,“Googleisnota

conventionalcompany.Wedonotintendtobecome

one.ThroughoutGoogle’sevolutionasaprivatelyheld

company,wehavemanaged

Googledifferently.Wehave

alsoemphasizedanatmosphereofcreativityandchal-

lenge,whichhashelpedusprovideunbiased,accurate

andfreeaccesstoinformationforthosewhorelyonus

aroundtheworld.”4

GoogledeclareditsindependencefromWallStreetin

numerousways,oneofwhichwasrefusingtoprovide

advanceinformationtoanalystsonfuturefinancialper-

formance.GoogleleftWallStreettofigureitoutfor

itself.

“Wedon

’tprovideguidance,

”declaredEric

Schmidt.“Wedon’twanttogetinthewayofrunning

thebusinessandguidancecouldlimitthatiftheygive

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GOOGLESPEAKS

quarterlylines.”5Googlewouldmakealldecisionsfor

thebestlong

-terminterestof

shareholders,evenif

quarterlyearningsturnedouttobebumpy.

Mostshocking,thecompanynamednochiefexecu-

tiveofficer,andthepostwouldremainopenuntilthey

gotaroundtoselectingone.EricSchmidtwouldserve

aschairmanoftheexecutivecommittee,givinghim

poweroverceremonialandlegalissues.

WhentheSECfirstreceivedGoogle’sS1,thecommis-

sionwasnotpleased.Itaskedformultiplechangestothe

papers,includingasuggestionthatthefounders

beless

casual.“Throughoutthedocument,yourefertoexecu-

tiveofficers,directorsandprincipalshareholdersbytheir

firstnames,”theSECwrote.“Forclarity,pleaseconsider

revisingthedisclosureto

refertothesepersonsbytheir

fullnamesorbytheirlastnames.”PageandBrinrefused

tocomplywiththerequest.6

However,theydidhavetomakesomeadjustments.At

thetimeoftheoffering,thebillion-dollarpatentinfringe-

mentlawsuitbyOvertureServiceswasalreadyinthe

courts.TheSECwrote,“YourstatementthattheOverture

Serviceslawsuitis‘withoutmerit’isalegalconclusion,

whichGoogleisnotqualifiedtomake.Pleaserevise[or]

omitthestatement.

”7ThistimeGooglecomplied,and

thendecidedtosettlethesuitbeforegoingpublic.Google

paidYahoo!2.7millionGooglesharestouseOverture’s

patentedwork.

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THEDUTCHAUCTION

TheIPOincludedanothersmackdownforWallStreet.

Googlewouldbypassinvestmentbankersfortheoffer-

ing,usingtheInternetandan

obscure

Dutchauction

processdesignedtodrawabroaderrangeofinvestors

thanthetypicalIPO.PageandBrinweredeeplyoffended

bythewayinvestmentbankerscontrolledwhocouldbuy

shares,andoftendoledoutpurposefullyunderpriced

IPOsharestoinsidersandpreferredcustomers,who

thensoldthestockforaquickprofit.

Googlestockwouldbesoldthroughbrokerage

houses,butanyoneofferingatorabovetheminimum

bidcouldparticipate.Investorswouldberequiredto

purchaseatleastfiveshares,anunusuallylowbarrier

ofentryforthisbusiness.

Pageexplainedwhyheandthemanagementteam

chosethetypeofpublicofferingtheydid:

Manycompaniesgoingpublichavesufferedfrom

unreasonablespeculation,smallinitialsharefloat,

andstockpricevolatilitythathurtthemandtheir

investorsinthelongrun.Webelievethatourauction-

basedIPOwillminimizetheseproblems,thoughthere

isnoguaranteethatitwill.8

Asinnovativeastheideawas,italsobroughtrisk.“The

auctionprocessforourpublicofferingmayresultina

phenomenonknownasthe‘winner’scurse,’and,asa

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GOOGLESPEAKS

result,investorsmayexperiencesignificantlosses,”

warnedGoogle.9Thiscouldhappenif,caughtupinthe

auctionfervor,buyersbidtoo

highfortheshares,andin

thehours,days,orweeksafterthelistingonthestock

exchange,thesharepricecollapsed.

Theever

-skepticalcolumnistAllanSloanwrotein

Newsweek,“Thereal

questioniswhetherGoogle,like

Buffett,willbeabletoignoreWallStreet’sdemandsand

goitsownway.Idoubtit....Googlewillhavetopay

attentiontoitsstockprice—andthus,toWallStreet.I

lovethewaythatGoogledissedtheStreetinitsfiling

—

distrustingtheStreetistherightmove.Goingpublic,

Ifear,willprovetobethewrongone.”10

Google’sformofownershipalsowascontroversial.

Page,Brin,andSchmidtsetupadual-classstockstruc-

turethatallowedthemtomaintaincontrolofthecom-

pany.Thethreeevokedthe“1/10”rule,underwhichtheir

B“supervoting”sharesget10votesforeveryonevoteallo-

catedtoanAshare.Inotherwords,themanagementtriad

togetherwouldcast66.2

percentofthevoteseventhough

theyownedonly31.3percentofthecompany.

Pageheld38.6millionshares,Brin,38.5million,and

Schmidt,14.8million.Theventurecapitalcompany

SequoiaCapitalheld23.9

millionandKleinerPerkins

Caufield&Byersowned23.9million.JohnDoerrand

MichaelMoritzalsohadapieceoftheactionwith24

millionshareseach.

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GoingPublic113

AmongtheadvantagesoftheA/Bshareplantothe

corporateleaders:Shareholderscouldnotchallenge

controversialdecisionsandahostiletakeoverwould

beimpossible.

Subsequently,someshareholders—theBricklayers&

TrowelTradesInternationalPensionFundinparticular—

objectedtotheA/Bshareplanandforcedashareholder’s

proposaltovoidit.Obviously,withoutthemanagement

triad’ssupport,themeasurehadnochanceofpassing.

BUFFETTONGOOGLE

MasterinvestorWarrenBuffetthadmetPageandBrinat

theAllenandCompany’sannualJulyconferenceinSun

Valley,Idaho.ThenLarry

andSergey,alongwithEric

Schmidt,madeapilgrimagetoBuffett’sheadquartersin

Omaha,Nebraska,beforeGooglewentpublic.

Allofthisseemsincongruous,consideringthatBuffett

isbestbuddieswithGooglearchrivalBillGatesof

Microsoft

andthatGeico,aninsurancecompanyownedbyBuffett’s

company,BerkshireHathaway,wassuingGooglefor

trademarkinfringementatthetime.

YetBuffettwasimpressed

withthetwoyoungmenand

theirideas.“It’snothardtoseethatGoogleisaphenome-

nalcompany,”hesaid.“Thewholeideaofsearchnever

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GOOGLESPEAKS

occurredtome.Ineverthoughtofit.NowatGeicowepay

theseguysalotofmoneyforthisandthatkeyword.”*

TheGoogleguyshaveaspecialcombinationoftalents,

hesays.Theyunderstand

bothtechnologyandbusiness,

andtheyknowwhattheculturewants.

“They’vegota

moneysensethatmixeswithaculturesense.”

LarryPagepatternedhis“LettertoShareholders”in

theannualreportaftertheletterBuffettwriteseachyear

forBerkshireHathaway.

*FromauthorinterviewwithWarrenBuffett,December10,2008.

BERKSHIREHATHAWAY’SSHARESTRUCTUREVERSUSGOOGLE’S

BrinoncesaidthattheA/Bsharestructurewaspatterned

afteroneusedbyBerkshireHathawayandseveralmajor

mediacorporations.Infact,theGoogleplanisnothing

liketheBerkshireplan,eventhoughtheendresultmay

besimilar.

Berkshireoriginallyhadonlyoneclassofshares,with

WarrenBuffettandhisfamilyholdingthemajorityofthose

shares.WhentheBerkshirepricerosetoaround$100,000

pershare,somelong-termshareholderscomplainedthat

theywouldliketosellsharesordistributethemasgifts,

butthehighstockpricemadethatawkward.Toresolve

thematterandmakethesharesmoreliquid,Berkshire

floatedanewshareofferingofBsharesthatwereworth

1/30ofanAshare.AnAsharecouldbeconvertedinto

30

Bshares.However,Bshareshadnovotingrightsand

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couldnotparticipateinaninnovativecharitablegiving

program,whichsincehasbeendiscontinued.So,even

thoughBuffettcontinuestodominatethecompanyonthe

basisofthelargenumberofsharesownedbyhimandhis

familymembers,heisnottheonlyonewhocanownA

shares.AllAsharescarryexactlythesamevoting

rights

thatBuffettdoes.AnyonecanstillbuyAshares,andany-

onewhochoosestodosocanbuyBshares.

MorganStanleyandCreditSuisseFirstBostonbecame

Google’sleadbanks,andthecompanypickedNASDAQ

asitsexchange,tradingunderthesymbolGOOG.

Snubbingfateagain,theGoogleguyschosethemonth

ofAugustfortheIPO,atimewhenmostofWallStreet

traditionallypacksitinandgoestothebeach.Scarier

yet,theypickedFridaythe13thtolisttheirshares.The

companyannounceditwouldsell$2,718,281,828worth

ofitsshares—anotherlittleGoogle/mathematicianjoke.

Theseeminglyrandomnumberisthenumericaldefini-

tionofe,aconceptsomethinglikepi,andafamiliarconcepttomathgeeks.Atfirst,Googleseta

pricerange

of$108to$135pershare.Later,duetoroilingcontro-

versy,theinitialsharepricewastrimmedto

$85per

share.Mostcompaniesstructuretheofferingsothey

cangopublicaround$20a

share.

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GOOGLESPEAKS

Onthedaytheshareswentonsale,thepricerose

to

$100andbythenextdaysharesweretradingat

$108.31.By2008,thesharessoaredto$741.79before

the2008recessioncausedthesharestoplummetmore

than60percent.Eventhen,thesharesneverdropped

below$247.

Googleshowedanindependentstreakinitsapproach

totheIPO,butitalsogotbadlyknockedaroundduring

theprocess.OnMay4,justdaysafterthegoing-public

announcement,theinsurancegiantGeicofiledalaw-

suitagainstthesearchengine

fortrademarkinfringe-

mentforsellingitsnameasasearchword.Thiscasta

cloudontheproceedingssinceGooglehadlostsimilar

lawsuitsinFranceandGermany.

TheSECalsotookacloselookatGoogle’sbooksand

foundirregularities.In2003,thecompanyhadissued

vastnumbersofsharesandoptionswithoutregistering

themorinformingemployeeshareholdersofitsfinan-

cialresults.Thecompanywasforcedtocorrecttheerror

bybuyingbacktheshares.It

wasneverclearwhythis

hadhappened,butspeculationwasthatitcameabout

becauseofSergeyandLarry’sfondnessforsecrecy.11

THEPLAYBOYINTERVIEW

Amidstallthecontroversyandconfusion,Larryand

Sergeymadeanothermisstep.Oncetheregistration

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GoingPublic117

statementwasfiledwiththeSEC,Googlewouldbein

therequiredquietperiod

untilthestockactuallysold.

Duringthistime,thecompanywasprohibitedfrom

doingorsayinganythingthatwouldhypetheshares.

InApril,justamonthbeforetheywouldbefilingforthe

IPOandenteringtheSEC-mandatedquietperiod,they

grantedaninterviewtoPlayboymagazine.Clearlythere

wasriskthatthearticlewouldappearbeforetheIPOwas

complete.Whenthestorycameupinanissueofthegirly

rag,questionsagainaroseastothefounders’maturity.

Whilethestorydidn

’trununtiltheSeptember2004

issue,copiesofthemagazineusuallyareavailableor

onnewsstandslongbeforethepublicationdate.Thus,

the“candidconversation”didbecomepublicduringthe

silentperiod.Again,itseemedasiftheIPOmightbe

interrupted.Butafterweeksofworryandscramblingby

Google’sattorneys,theSECagreedtoallowthestoryto

belistedasanaddendumtotheS1,makingitformally

partofthefulldisclosure

requirement.

Ithelpedsettlestormywaterswhenallthreetop

executives—LarryPage,SergeyBrin,andEricSchmidt—

intherunuptotheIPOreducedtheirannualsalariesto

adollarayearandrefused

bonuses,tyingtheirpersonal

wealthdirectlytothecompany

’sperformanceinthe

stockmarket.Googlewasbackontracktobeoneof

themostuniqueandunlikelyIPOsinthehistory

ofWallStreet.

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GOOGLESPEAKS

Intheend,thosestrongearnings,profits,andreserve

fundsprevailedandtheGoogleguyspulleditoff.The

initialpublicofferingtookplaceonAugust18,2004,

with19,605,052sharessellingatanopeningpriceof$85

pershare.Google’sofferingraised$1.67billion,giving

thecompanyamarketcapitalizationof$23billion.A

numberofGoogleemployeeswithsharesinthecom-

panybecamemillionairesovernight,andLarryPage

andSergeyBrinfoundthemselvesmultibillionairesat

age27.Googlewasanimmediatefavoritewithindivid-

ualinvestorsandthestockpricehassoared.

OneofthebigwinnersfromGoogle’spublicoffering

wasStanfordUniversity,whichactuallyownskeyGoogle

technologydevelopedattheUniversity.WhentheIPOwas

complete,Stanfordheld7,574sharesofClassAand

1,650,289sharesofClassBGoogle.AccordingtotheSEC,

thoseholdingswerevaluedat

$179.5million.Stanford

trusteessold184,207shares,nettingaquick$15.6million.

TENYEARSLATER

Googleentered2008,thetenthanniversaryofitsfound-

ing,withtrumpetsblaringandtriumphantflagsflap-

pinginthebreeze:

•Month-by-monthitsshareofthesearchmarket

wasgrowingatwellover15percentannually,

reachingnearly60percentearlyintheyear.

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•Itsfinancialpositionwaslikeafortress,with$14.2

billionincash,

$17.3billioninassets,andonly

$2.4billionincurrentliabilities.

•Inthefouryearsaftergoingpublic,salesrevenues

hadrocketedfrom$3.2billionto$16.6billion.Net

incomehadincreasedevenmore,goingfrom$399

millionin2004to$5.3billionattheendof2007.

•Googlenowhadaworkforceofnearly20,000

comparedto3,000fouryearsearlier.

•Thecompanywasacquiringnewbusinessessuch

asYouTubeandpioneeringproductsinallsortsof

fields,includingthestoringofmedicalrecordsand

otherinformationonline.

Evenso,thereweresignsthattheGooglephenomenon

hadreachedanewphase,andthatperhapsexpectations

for“thesearchenginethatcould”hadbecomeoverblown.

Googlewasbeginningtoscarepeoplewithitsunbe-

lievablereachintoprivacy,propertyrights,andhuman

rights.Itscompetitorswerefeelingthehotbreathof

Googleontheirnecksin

dozensofInternetandwire-

lessrealms.Thecompanywasaccusedofwantingto

dominateallformsofadvertising,concernsthatscut-

tledaproposedadvertisingpartnershipwithYahoo!.

BusinessWeekposedthequestion,“IsGoogletoo

power-

ful?,”andWiredmagazinedeclared,“Who’sAfraidof

Google?Everyone.”

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GOOGLESPEAKS

WritingforTheMotleyFoolwebsite,AlyceLomax

admittedthatGooglewasaninnovativeandsmartcom-

pany,butshehadherdoubtsaboutthelongterm.

“Here’swhyI’mapathetictoalltheGooglehoopla:Its

otherproductshaven’tcomeanywherenearitssuccess

withcoreInternetSearch(andlucrativetargetedadver-

tising).Fortunatelyforit,thatfinancialsuccesshas

allowedittocarryonlikeanabstractartist/prima

donna,throwingabunchofstuffagainstthewalltosee

whatsticks.Butsofar,ithasbeenimpressivejusthow

littletheseextrashavereallymatteredtoGoogle.”12

TheEconomistspeculatedthatGoogle’sshareprice

hadpeakedat$742onNovember6,2007,asuspicion

thatwouldbeconfirmedinthemonthstocome(atleast

sofar).Thestock’sfirst

realslidecouldbepartlyblamed

onatouchystockmarket,butalsopartlyonaslight

slowinginGoogle’smiraculousgrowth.

Inearly2008,thesharestookasecondpounding

whensomemarketanalystspredictedthatGoogle’sad

saleswoulddeclinesubstantially.OnFebruary28,2008,

thesharesfell$10.8billioninmarketcapitalizationin

just20minutes.Whenthesalesnumberscameout,

Googledefiedtherumors,stillrunningstrong.The

sharepricerecovered

somewhat,butstillclosed25per-

centfromitsJanuaryhigh.

Notlongafter,therealizationofaworldwidereces-

sionclenchedthemarketsinfearandGooglesoonlost

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60percentofitsvalue.Atonepointintheyear,Google

tradedaslowas$247.Bytheautumnof2008,Pageand

Brinhadlostroughlyhalfoftheirnetworth(atotalof

$12.1billion)duetovolatilityinthestockmarket.

ItwastruethatGoogle’sbreakneck-speedgrowthhad

slowedalittle,buttheresultswerestilldarngood.Third-

quarterprofitsgrewahealthy26percent,althoughthey

paledsomewhatcomparedto35percentinthethird

quarterof2007.Thenumber

ofthird-quarterpaidadver-

tisingclicksgrewby18percent,offonlyslightlyfrom

2007’s19percent.

ToGoogle’scredit,thecompanydidnotgointodenial.

Sergeyadmittedthecompanywasasvulnerabletoeco-

nomicstrifeasanyother:

Totheextentthateverybodystartsspendingalotless,

Idon’tthinkwearenecessarilyimmune.Idon’tthink

anycompanyisimmunetoatotalbust.13

AlthoughEricSchmidtsaidhewasoptimisticabout

Google’sfuture,headded,“Weareinunchartedwaters

now.”14

Thecompanyimmediatelybeganreviewingallofits

expenditures,includingthehoursoffreecafeteriaserv-

iceandliberalbuildingofdatacenters.Googlebegan

reducingitsarmyof10,000contractemployees.Schmidt

saidhewouldtrimawayanyprogramthecompanywas

merely“fiddlingwith.”15

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GOOGLESPEAKS

Itwasn’tentirelybadnewsatGoogle,though.The

preparationforhardtimescameearlyandGoogle

’s

financialfootinghasremainedsolid.Itspercentageof

thesearchbusinesskeptgrowing,andalongwithit,ad

sales.

“Googlejustcontinuestograbmarketshare,

”

saidMattTatham,spokesmanforthemarketresearch

companyHitwise.“There’snoceilingforthem.”16

ThreemonthsafterGoogle’stenthanniversaryand

inthemidstofmuchgloom,TheMotleyFool’sAlyce

LomaxnowsawGoogle

’sbelt

-tighteningaspositive.

“OnGoogle’s10-yearanniversaryinSeptember,Isaid

thatitscreativityneedstobetemperedwithmaturity

andrestraint.Maybethecompanyfinallygetsit.Or

maybetoughtimesbuildcharacterincompaniesand

peoplealike.Whateverthe

case,agrown

-upGoogle

couldendupbecomingaverygoodthingforinvestors’

long-termportfolios.”17

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TheVision

LarryandSergey’sdeepsenseofpurposedroveGoogle

fromthebeginning:

“SergeyandIfoundedGoogle

becausewebelievedwecouldprovideanimportant

servicetotheworld—instantlydeliveringrelevantinfor-

mationonvirtuallyanytopic,

”wroteLarryPagein

Google’sfirstcorporatereport.

Servingourendusersisattheheartofwhatwedo

andremainsournumberonepriority.Ourgoalisto

developservicesthatsignificantlyimprovethelivesof

asmanypeopleaspossible.Weareproudoftheprod-

uctswehavebuilt,andwehopethatthose

wecreateinthefuturewillhaveanevengreaterposi-

tiveimpactontheworld.1

Googleaspires“tocreatedesignsthatareuseful,fast,

simple,engaging,innovative,universal,profitable,

beautiful,trustworthyandpersonable.Achievinga

123

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GOOGLESPEAKS

harmoniousbalanceofthesetenprinciplesisacon-

stantchallenge.Aproductthatgetsthebalancerightis

‘Googley’—andwillsatisfyanddelightpeopleall

over

theworld.”

“LarryandSergeythoughtalotabout[ourmission]

beforetheygotstarted,”explainedGoogleVicePresident

MarissaMayer.

“Atothercompanies,there

arethese

DilbertiancrewsofHRpeoplewhoshowupandsay:

‘We’veoutgrownourmissionandweneedtowritea

newone.

’ThathasneverhappenedatGoogle.The

missionisexactlywhatLarryandSergeywrotebackin

thefallof1998,beforeanyofuswereevenhere.”

DespitefrequentearlystatementsthatGooglewasabout

search,Mayersaidthatthevisionalwayswasbroaderthan

that.“Itwasn’tjustaboutWebsearch.WhenIshowedup,

Isaid,‘Guys,shouldn’twebecallingthecompanyGoogle.

com?’Theysaid:‘Oh,we’renotjustadot.com.We’renot

goingtobejustabouttheWeb.We’regoingtobeall

kinds

ofthings.’”2

Inthefallof2004,Google’stopmanagementrealized

theyneededmorestructure.Theyengagedinaprocess

ofstrategicreview,or“visioning”aboutthecompany

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TheVision125

meaning,intent,andfuture.ItallstartedwhenPage

andBrinwentintoall

-nightseclusion,writingwhat

becameknownas“TheTablets.”(ToreadtheGoogle

TenCommandments,checkoutthesection“TenThings

GoogleHasFoundtoBeTrue,”inthechapter“Google

Culture.”)

MAKEITUSEFUL

Googleismyrapid-responseresearchassistant.Ontherun-upto

deadline,Imayuseittocheckthespellingofaforeignname,

toacquireanimageofaparticularpieceofmilitaryhardware,to

findtheexactquoteofapublicfigure,checkastat,

translatea

phrase,orresearchthebackgroundofaparticularcorporation.

It’stheSwissArmyknifeofinformationretrieval.3

—GarryTrudeau,cartoonistandcreator,

“Doonesbury”

PageandBrinfeltfromthebeginningthattheyshould

workonsomethingthatwasnotsimplytheoretical,but

thatwouldbehelpfultoothers.Theirdreamscombined

severalpossiblecareersintoone.“Mygoalwastowork

onsomethingthatwas

academicallyrealandinterest-

ing,”Pagerecalls.

Fromanearlyage,IalsorealizedIwantedtoinvent

things.SoIbecamereallyinterestedintechnology...

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GOOGLESPEAKS

andbusiness.SoprobablyfromwhenIwas12Iknew

Iwasgoingtostartacompanyeventually.

Googleteamstakethemissionastepfurther,tryingto

discoverneedsthatpeopledon’tyetknowtheyhave.

ThereisnoquestionthatGoogleisusefulandthe

waysinwhichitcanbeusefulseemendless.Forexam-

ple,abicyclistinthe2008Olympicsdescribedhowshe

usedGoogleEarthtostudy

theOlympicbicycleroute

inChinaandthenfindasimilarrouteintheUnited

Statesonwhichtopractice.Landsurveyorsareusing

GoogleEarthforpreliminaryjob

-sitereconnaissance

andforplanningthesurvey.

Duringthe2008elections,

Googleuseditsmapstocreateawebsitetohelpvoters

findtheirpollingplaces.ThelistofwaystouseGoogle

goeson.

Someideasseemusefulbutdon’tturnoutthatway.

The“I’mFeelingLucky”buttondirectsuserstothefirst

pageGooglereturnsfortheirquery.So,wheredidthe

ideaforabuttonthatanticipatesexactlywhatsomeone

wantsworkout?

DuringaNationalPublic

Radio

Marketplaceinter-

view,Sergeyexplained,

“Thereasonit

’scalled

‘I’m

FeelingLucky,’isofcoursethat’saprettydamnambi-

tiousgoal.Imeantogettheexactrightonethingwith-

outevengivingyoualistofchoices,andsoyouhaveto

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TheVision127

feelalittlebitluckyifyou’regoingtotrythatwithone

go.That’soneoftheotherproblemswiththebutton.It

doesn’talwaystakeyouwhereyouwanttogo.Butsince

it’sthere,surelypeoplemustbeusingit.”

MarisaMayer,Google

’svicepresidentresponsible

foreverythingonthesearchpage,saysnotreally.It’s

notapopularitem.“Iwouldsayit’slessthan1percent

ofoursearchesaredonethroughthe‘I’mFeelingLucky’

route,”shesaid.EvenSergeyBrinadmits,“Isometimes

useit,thoughrarely.”

TomChavezheadsRapt,acompanythathelpsdeter-

minethedollarvalueofadvertisingonaWebpage.He

didthemathonhowmuchthe1percentofpeoplewho

usethebuttonarecostingthecompany.

“Basically,”

saysChavez,“youhave$110millionofrevenuelossper

yearassociatedwiththatbutton.

”5Thelosscomes

becauseoftheadvertisingthatsearchersdon

’tgeta

lookat.Googlekeepsthebutton,however,becauseof

whatitseesasacomfortfactor.

THEMANYWAYSTOGOOGLE

TherearescoresofwaystouseGoogle,andcreative

applicationsareaddedsoquicklyit’snearlyimpossibleto

keeptrack.

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GOOGLESPEAKS

SimplesearchesonGoogle(aswellasmanyother

searchengines)havebecomeridiculouslyeasy.Thesearch

boxalsoactsas:

•Acalculator:Insertanyequation,suchas56ϫ287Ϭ

11,andgetaquickresult.

•Aconverter:Milesto

kilometers,pintstogallons,

kilogramstopounds—askandyou’llgettheanswer.

•Acookbook:Gotoyourrefrigerator,checktheleft-

overs,oddsandends,andsoon.Typetheitemsinto

theGoogletextboxandcomeupwitharecipe.The

dayafterThanksgiving,theitems“avocado,orange,

turkey,cranberry,cheese,”broughtupsearchresults

ofarecipeforturkeytacoswithcranberrysalsa.

Yummy!

•Atelephonedirectory:Typeinthewordphonebook,acolon,aname,anda

location,andgetthenumber.

Ifyouwanttotrackdownyouroldcollegeroom-

mate,SlymSmyth,andyouthinkhe’sinMiami,type

inphonebook:slymsmythMiamiFLandthenumber

shouldcomeup.Thisfeatureoffersan“opt-out”but-

ton.Removeyournamefromthephonebookifyou

wish.

•Astockticker:ThesymbolGOOGlinkstoareal-time

sharepriceforthecompany.Itworksforanystock.

Allyouneedisacompany’sstockexchangesymbol.

•Aflighttracker:Typeintheflightnumber,suchas

AA377,andtrackaflight’sprogress.

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•Aridefinder:Ifyouwanttomovearoundoneoften

majorU.S.cities,thisisataxi,limousine,andshuttle

searchserviceusingreal-timepositionsofvehicles.

•Anotherchance:Ifyouhitabrickwallwithyour

search,ordonotturnouttobeluckyatall,explore

BananaSlug(

www.bananaslug.com).BananaSlug

wasdevelopedasanapplicationprograminterface

(API)toGoogle.Atthesiteyoukeyinyoursearch

words,selectacategoryforyoursearch,andthenhit

thesearchbutton.BananaSlugaddsarandomword

fromyourchosencategory.Oftenthisrandomcate-

gorywordbringsupanentirelynewlistofhitswhere

youmayfindtheoneyou’reseeking.

Googleapplicationscoveranextensiverangeoftasksand

subjects.Someare

appropriatefortypicalcomputerusers.

OthersareformoresophisticatedWeb

-oriented

individuals.

•Chromebrowser:DesignedtocompetewithMicro-

softandFirefox,Chromerecentlyemergedfromthe

betastageasasimplebutveryfastbrowserwith

someunusualfeatures.

•DocumentsandSpreadsheets:Thisfreesoftware

issimilarto,butlesssophisticatedthan,thatsold

by

Microsoft.Thesoftwarealsoallowsthesharingof

informationinrealtime.

•FlightsSMS:Formobilephoneusers,thisdelivers

informationonthestatusofyourflightwhenyou

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GOOGLESPEAKS

textyourairlineandflightnumberto4666453

(GOOGLE).

GoogleAndroid:Softwareplatformandoperatingsys-

temformobilephones.

GoogleBooks:Selectsbooksaccordingtosearchkey-

word,thenallowsbrowsingofcertainvolumesandthe

downloadoffulltextofothers.Forexample,theShake-

spearesearchfeatureletsuserslocateclassictexts

from

theBardofAvon.

GoogleEarth:ImagesofEarthandeventhegalaxies

with360-degreeviews.Theimagesaren’treal-time,and

ifyouzoomintooclosetheygetfuzzy,butit’sacooltool.

Googlealsooffersviewsoftheoceanfloor.

IFeelLucky:Aseldom

-usedGooglefeature,IFeel

Luckytakessearchersdirectlytothetopsearchresult,

sansadvertising.Googlekeepsthebuttoninplaceasa

comforttousers.

GoogleImages:Ifyou’rejustcuriousabouttheavaila-

blephotosofcelebrities,fromAlaskaGovernorSarah

PalintoactorMattDamontosportsfigures,gotoGoogle

Images.Thereareimagesofalltypes—drawings,paint-

ings,cartoons,posters,andmore.Easytoborrow(orsteal

orsample)foryourownartprojects.

GoogleMaps:Givesmapsanddirectionstospecific

addresses.Otherfeatureshavebeenintegratedintothe

maps,includingpublic

transportationroutes,andloca-

tionsofschools,museums,andsoforth.

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Gmail:Notthefirstoreventhebeste-mailservice,but

probablytheonewiththelargeststoragecapacity.Gmail

usersalsogetadvertisementslinkedtokeywordsinthe

messages.

GoogleNews:Anaggregatorofnewssummariesfrom

4,500English-languagenewssources,theservicecan

be

customizedaccordingtotheuser’sinterests.

GoogleSets:IntheGooglewindow,typeinGoogle

Sets.Uppopsanapplicationthatallowsyoutostartalist

ofacertaincollectionofthings;thenGooglegivesyoua

longerlistoflikeitems.Forexample,typeinruby,opal,

emerald,andyou’llgetaninventoryofpreciousstones.

Entercommongardenflowerssuchasrose,violet,daisy,

andalistofdomesticatedflowersappears.Bycontrast,

typeinyarrow,lupine,

harebell,andthelistiscompleted

withwildflowers.Thisisausefultoolforjoggingthe

memoryoraddingmoreinformationtowhatyoualready

know.

GoogleStreet:Photographsofactualstreetsandeven

specificaddressesinmostU.S.citiesandmanyothercit-

iesaroundtheworld.Thisapplicationtendstomakeresi-

dentsfairlynervous.

GoogleTalk:Analternativetothetelephone,this

allowsyoutospeaktopeople

anywhere,anytime,usinga

computer.

VoiceLocalSearch:Freeservicefromanytelephone.

Call1

-800-GOOG-411(1

-800-466-4411)andaskfora

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GOOGLESPEAKS

businessbynameortypeandlocation.Apleasantmale

voiceresponds,andentertainswithscatsingingwhilethe

informationisretrieved.

YouTube:Socialnetworkingwebsitefeaturingvideo

clipsandsomefulltelevisionshows.It’sfree,butyoumay

discoveradsappearingwithcertainvideos.

MAKEITBIG

“Google’sambition,

”explainedEricSchmidt,

“isto

solvebigproblemsthatimpactalotofpeople.”6Schmidt

addsthattheGoogleguys“thinkaboutwhatshouldbe

andassumeitispossible.”7

“Solvingbigproblemsiseasierthansolvinglittle

problems,”claimsLarry.8OnereasonGooglesponsors

itsannualZeitgeistconferenceistoencouragethose

attendingtothinkaboutsolutionstotheworld’smajor

dilemmas.

Inonestrategymeeting,BrinandPagewereannoyedat

thepresentation.Pagecomplainedthattheengineers

weren’tambitiousenough.Brinagreed,callingthepro-

posalsmuddledandoverlycautious.“Wewantsome-

thingbig,”saidPage.“Insteadyouproposedsomething

small.Whyareyousoresistant?”9

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Googleofficiallybecamethe

world’slargestsearch

libraryin2000,onewithabillion-pageindex.Bymid

2008,itsengineersreportedthattheyhadregisteredthe

trillionthWebpageintothesearchengine.

WeServetheWorld

Wecontinueoureffortsto

makeGooglemoreglobal.Googleis

availablein160differentlocalcountrydomainsand117lan-

guages(includingsomeobscureoneslike“SwedishChef”—

Bork,Bork,Bork).

—Google’s2007Annual

Report

Thefirsttenforeign-languageversionsofGoogle.com

werereleasedin2000,withaccessinFrench,German,

Italian,Swedish,Finnish,Spanish,Portuguese,Dutch,

Norwegian,andDanish.ThosewhospeakAfrikaans

to

IcelandictoZulucannowuseGoogleintheirnative

tongues.

CheckingoutGoogle’slanguagelist,youmightfind

yourselfwonderingwhereTwiisspoken.Inadditionto

Bork,Bork,Bork(the

languageoftheSwedishcheffrom

theMuppetShow),thoseconversantinfictitioustongues

suchasKlingonandElmerFuddalsocanGoogle:“...

lotsofpeopleuseourservicesinplacesSergeyorI

haven’tbeentoyet,”Page

noted.

WhileGoogleoffersaservicethathooksuptranslators

withthoseneedingtranslations,oneofGoogle

’smost

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GOOGLESPEAKS

challengingandintriguingprojectsisautomated,

machine-basedlanguagetranslations.Insteadofcon-

vertingtoanewlanguagethetraditionalway,thesystem

searchesforthemostoften

andcommonlyusedtransla-

tionofwordsandphrases.Thenitputsthemtogetherin

sentences.Sofarthetranslationsarefairlycrude,but

languageexpertsbelievethatwithGoogle’shugedata-

base,thiskindoftranslationshouldbecomesmoother

overtime.

AccordingtoEricSchmidt,

“Wewilleventuallydo

100by100languages,totakethissetoflanguagesand

converttoanother.Thisalonewillhaveaphenomenal

impactonanopensociety.”10

GoogleopeneditsfirstofficeoutsidetheUnitedStates

in2001.Sevenyearslater,thecompanyoperatedmore

than60officesabroad.GoogleknowsthattheInternet

isforthemostpartoblivioustointernationalborders,

andincreasingly,theactual

worldisbecomingmore

likethevirtualworld.“Westrivetobealocalcompany

ineverycountrythatweoperate[in]andweunderstand

thatourusersallhavedifferentcultures,”saysGoogle.

WhenGooglewentinto

SouthKoreaandChina,it

hadtoalteritsminimalisthomepage.Websurfersthere

preferredpagesthatwerevisuallycomplexandoffered

alotofentertainment.11

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Googleisstillworkingtoestablishbusinesspres-

encesinplacessuchastheMiddleEast.“Asweexpand

ouroperationsandhireourfirstemployeesinanother

country,thatpartofGooglefeelslikeastartup,”wrote

LarryPageinthe2007AnnualReport.“Everytimewe

traveltoanewGoogleofficeweseeamazing,smart,

excitedpeopleandlavalamps,”Pagesaid.12

Attentiontoglobalmarketsmakesgoodbusiness

sense:By2008,morethan

halfofGoogle’srevenuewas

comingfromoutsidetheUnitedStates.13

“Itturnsouttherealworldmatterstopeople,inthe

formofmaps,satelliteimages,businesslocations,bike

paths,andallothertypesof

geographicdata.Weare

hardatworkinallthesedomains.”14

GooglealsoliterallygoesoutofthisworldwithSky

mode—adazzlingviewofthenightsky,completewith

super-high-resolutionimagesfromtheHubbletelescope.

MAKEITFUN

Googlehasimprovedmysexlife,tightenedmyabs,andbrought

meclosertoGod.(Ikeed.)Actually,asaworkinggossipcol-

umnist,IappreciateGoogleasarough—veryrough—research

tool.TheInternetisstilltheWildWest.15

—LloydGrove,columnist,NewYorkDailyNews

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GOOGLESPEAKS

SiliconValleyhasahistoryofAprilFools’Dayjokes,and

Googlejoinsrightin.In2000,Googleannouncedthe

MentalPlex,Google’sabilitytoreadyourmindasyou

visualizethesearchresultsyouareseeking.Sometimes

theAprilFools’Dayjokesgetjumbledupwithmore

seriousbusiness.OnApril1,2004,Googleproclaimedit

wouldopenaresearchfacilityonthemoon.Onthe

sameday,itannounceditsWeb-based,freemailserv-

ice,Gmail.Shootingforthemoonclearlywasaprank,

butwhataboutGmail?Itwasreal.

Googlehastriedtoinfuseasenseoffunintoitshuntfor

greateradvertisingrevenues.Thiswasmostapparent

whenitmadeitselfaliaisonbetweenHollywoodtalent

andonlineentertainmentwithits“SethMacFarlane’

s

CavalcadeofCartoonComedy”project.Theclipsofthe

televisionshow

TheFamilyGuywereofferedtoa

numberofWebpagesfrequentedby18-to34-year-old

men.“WecanworkwithmoreandmoreSethsandcon-

nectthemtoadvertisers,”saidAlexandraLevy,director

ofbrandedentertainmentatGoogle.16

LarryPageisimpressedbytheentertainmentavaila-

bleonhisownwebsite:“I’

mamazedatthequalityand

diversityofthevideoavailableonGoogleVideo,with

morebeingaddedeveryday.Youcanbuyfirst-runpro-

grams,suchasSurvivorfromCBS,withhighpicture

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quality,andwatchthemonyourcomputeranytime.”

Pagemarveledthatuserscouldsubmittheirownvideos

andletanyoneintheworldwatchthemforfreeor

embedavideofromGoogleVideoonanyWebpage:

Toviewsomeofmyfavorites,searchfor

“Russian

climbing”foracrobaticsontallbuildings,“bsb”for

amazinglipsynchers,or“airbus7”towatchanAir-

busbeingbuiltinsevenminutes.17

Sportsfansgetinontheaction,too.In2008,Google

providedStreetViewfortheentireTourdeFrancebicy-

cleraceroute,thefirstlaunchofStreetViewimageryin

Europe.

Sometimesthefun

-lovingbusinessstyleatGoogle

seemsjustplainjuvenile.In2006,Brin,Page,and

SchmidtwerepreparingforaGooglesalesconference

atthemassiveSanFranciscoMosconeCenter.Before-

hand,theymetwithaTimereporter,AdiIgnatius.The

groupgatheredatatablecoveredwithLegobricks.

ThestorythatPageoncebuiltaprinteroutofLegoshas

becomelegendary.BothBrinandPagewerebusysnap-

pingbrickstogether.Ignatius

askedwhattheywere

building.“IwashopingtobuildaLegonuclearreactor,”

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GOOGLESPEAKS

saidBrin,

“butIthinkIhaveabazooka

-wielding

robot.”Pagechimedin,“Hey,Iknow.Let’sbuildEric

outofLegos.”

Laterthereporteraskedhowthemanagementteam

wasdealingwiththeneedfortransparencyintheir

business.Brinheldupaclearplasticpiece,“Look,I’m

onlyusingtransparentLegos.”18

GoogleUsersHearkentotheCall

IfGooglersdon

’tmakethewebsiteGooglyenough,

thoseusingGooglewilladdtheirownenhancements.

Internetsearchershavecompiledalistofamazing

sightsfromGoogleEarth.Theyhavediscoveredthat

fromonhighthegardensatChateaudeVersailleslook

likeagiant,grinningpuppy.Hidinginthehillsof

Alberta,Canada,istheimageofanenormousnative

American,completewithheaddress.Andalikenessof

JesuscanbefoundinPeruviansanddunes.

Tomaketheplanetevenmorealluring,humanshave

startedcreatingartthatcanbeseenfromspace,ifsome

ofitcanbecalled“art.”KentuckyFriedChicken’sColo-

nelSaundershasbeenpaintedintotheNevadadesert,

OprahWinfreyfansputherfaceinafarmfield,andif

you’restillwonderingwhereWaldois,hisoversized

imagehasbeenpaintedonrooftopshereandthere

aroundtheglobe.

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Beforeanyonegetstoosilly,thecompanywarns,

“Googledoesn

’tletfunorpersonalityinterferewith

otherelementsofadesign,especiallywhenpeople

’s

livelihood,ortheirabilityto

findvitalinformation,is

atstake.”19

DON’TDOEVIL

Managementisdoingthingsright;leadershipisdoingthe

rightthings.20

—PeterF.Drucker

Inthe2004Playboy

interviewthatplayedhavocwithits

publicofferingprocess,thewriteraskedwhether“Don’t

DoEvil”wastrulythecompanymotto.

“Yes,it’sreal,”insistedSergey.

“Isitawrittencode?”asked

thereporter.

“Yes,”saidSergey.

“Wehaveotherrulestoo.

”He

added,“It’snotenoughnottobeevil.Wealsoactively

trytobegood.”21

In2001,Googleengagedits

employeesinanexercise

ofdefiningthecompanyandsettinggoals.Thecompa-

ny’sengineers,notoriouslyanti-corporate,pooh-poohed

thediscussion.Butoneengineer,PaulBuchheit,spoke

thewordsthatmanywere

thinking.Buchheitsaidthat

alltheideaskickingaroundcouldbewrappedupinthe

phrase,“Don’tbeevil.”Thestatementresonatedand

stuck.

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GOOGLESPEAKS

DavidFriedberg,wholeftGoogletofoundWeather-

Bill,whichhelpscompaniesprotectthemselvesfrom

damagingweatherevents,saidthatbeforeeveryacqui-

sition,thepairaskedwhether

itcouldbeevil.“Thatwas

alwaystheconsideration,”hesaid.22

BretTaylor,whobecameaventurecapitalistafter

exitingGoogle,saidthatthefounders’attentiontothe

sloganmadehimfeelpartofsomethingspecial.“They

alwaysmademefeelmuchbiggerthanmyself.”23

HowGoogleDefinesEvil

EricSchmidtoncequippedthatevilwaswhatever

SergeyBrinsaiditwas.Google’sexperiencesshowhow

difficultitistopindownthedefinitionofevil.

Brinsaysthatthereoftenisdiscussionaboutthedefi-

nitionofevilandhownottobeevil.“Wedealwithall

varietiesofinformation,”hesays.

Somebody’salwaysupsetnomatterwhatwedo.We

havetomakeadecision,otherwisethere

’sanever

-

endingdebate.Someissuesarecrystalclear.When

they’relessclearandopinionsdiffer,sometimeswe

havetobreakatie.Forexample,wedon’tacceptads

forhardliquor,butweacceptadsforwine.It’sjusta

personalpreference.Wedon’tallowgunads,andthe

gunlobbygotupsetaboutthat.Wedon’ttrytoputour

senseofethicsintothesearchresults,butwedowhen

itcomestoadvertising.24

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WhenMotherJonesmagazinesasks,“IsGoogleEvil?,”

thediscussionhasbecomeserious.25“Whenfaced

with

doingtherightthingordoingwhatisinitsbestinter-

ests,Googlehasalmostalwayschosenexpediency,

”

wroteMotherJones.26

Asevidence,themagazinecitedtheincidentswhere

Googleeliminatedlinkstoananti

-Scientologysite

aftertheChurchofScientologyclaimedcopyright

infringement.Inanotherinstance,Googleapparently

handedoversomerecordsofsocialnetworkingsiteson

theserviceOrkuttotheBraziliangovernment.Yet,the

ChurchofScientologyhadalegitimatelegalclaim,and

theBraziliangovernmentwasoperatingwithinitsown

lawsininvestigatingallegedracial,homophobic,and

pornographiccontent.

Google’swebsiteexplainsthatthecompanywill

removepagesthatviolateU.S.laworthelawofahost

country,orbreachitsownWebmasterGuidelines.

Onebloggersaid,“WhileIdonotconsiderGoogle

‘evil’(Ireservethatlabelforreallybadthingsinlife),

Idothinkthattheyarethebigbullyontheblock.”27

Fromprivacytopropertyrightstohumanrights,the

scopeandinfluenceofGooglehaveledtounintended

consequences,someofthemtragic:

•Googlehascomeunderfire

forborrowingpatented

orcopyrightedmaterialwithoutpermission,and

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GOOGLESPEAKS

forallowingAdWords

advertiserstobidon

trademarkedkeywords.

•AvideowaspostedonGoogle

’sItalian

-language

siteshowingfourhighschoolboyshumiliating

anotheryoungmanwithDown’ssyndrome.

•CourtsinMumbai,India,wereconsideringwhether

terroristsusedGoogleEarthtohelpplotattacks

inthatcitythatleft170deadandmanymore

injured.

TherearenumerousareasinwhichGoogleclearly

takesthemoralhighground:

•Googlerequirescertificationtorunregulated

keywords,suchasthoserelatedtopharmaceuticals

andotherlegaldrugs.Somekeywords,suchas

thoserelatedtogamblingandhacking,arenot

allowedatall.

•FromJune2007,GooglebannedAdWordsadsfor

studentessaywritingservices.Whilemost

universitieswelcomedthemove,thereisno

restrictiononsuchsitesappearingintheregular

Googlesearchresults.

•Inanideathatisatthesametimeinformative

andpeculiarlyspooky,Googlestudiedsearcheson

cold,flu,andpaintreatmentsandmedicationsto

helpidentifyareaswherefl

uepidemicsare

occurring.

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TheMottoLosesSomeShine

Inthebeginning,everyonewasimpressedandeven

touchedbythenotionthatayoungcompanywouldso

diligentlyguardagainstbadbehaviorinitsownranks.

ThenasGooglegrewlikeManintheMoonMarigolds,

thequestioningbegan.

“Apparentlyacertainpercentageofanysetgroupof

peoplelooksforsignsthatcompanieswithsterlingrep-

utationsareactuallyfrontingforSatan,”writesaformer

Googleronhiswebsite.“Andofcourse,withGoogle’s

‘Don’tbeevil’mottohangingonitsbacklikea‘kickme’

sign,thecompanygotcutverylittleslack.”28

AmazonCEOandGoogleinvestorJeffBezosobserved:

“Well,ofcourse,youshouldn’tbeevil.Butthenagain,

youshouldn’thavetobragaboutiteither.”29

Googleexecutives,claimsomeobservers,havebeen

slowlyedgingawayfromthecompany’sfamouspledge.

VicePresidentMarissaMayersoundedaretreatfrom

themottowhenshedeclaredthat“Don’tBeEvil”never

wasandneverwouldbeanelectedorordainedmotto.

“‘Don’tbeevil’ismisunderstood,”saidEricSchmidt

ina2008interview.“Wedon’thaveanevilmeter...the

ruleallowsforconversation.IthoughtwhenIjoined

thecompanythiswascrap...itmustbeajoke.Iwas

sittinginaroominthefirstsixmonths...talkingabout

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GOOGLESPEAKS

someadvertising...andsomeonesaidthatitisevil.

Itstoppedtheproduct.It’saculturalrule,awayofforc-

ingtheconversation,especiallyinareasthatare

ambiguous.”30

CanFreeSpeechGoTooFar?

Puttingtheword“Jew”intotheGooglesearchboxat

onetimeinstigatedascorchingdebateonthesubjectof

ethics,morality,fairness,andunintendedconsequences.

WhenStevenWeinstock,aNewYorkrealestateinves-

torandformeryeshiva

student,searchedontheword

“Jew,”hewashorrifiedattheresults.Anaggressively

anti-Jewishwebsitecalled“JewWatch”cameupatthe

topofhissearchlist.Weinstockwentonacrusade,cir-

culatinganonlinepetitiondemandingthatGoogle

removethesitefromitsindex.

Thedilemmaisbothpainfulandcommon:Free

speechclearlyisthemarkofanopenanddemocratic

society,butinstigatinghateagainstanygroupofpeople

isbothwronganddangerous.Asunlikelyasitmay

seem,chargesfloatedontheInternetthatGooglewas

anti-Semiticandhadpurposelyplacedahate-sitehigh

initsrankings.31

Googledidnotremovetheoffensivesitefromits

index,butapparently,forawhile,includedatagatthe

topofthesearchwarningpeoplethatJewWatchcon-

tainedoffensivematerial.Someobserversclaimthat

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Googlenowhaspartiallyblockedthesite.Arecent

searchoftheword“Jew”inGoogledidnotbringthe

siteup,evenfardownthelist.However,asearchofthe

words“JewWatch”didlocatethesite,anditappeared

withouttheoffensivenesswarning.

Googleoffersthis

perspective:

IfyouuseGoogletosearchfor“Judaism,”“Jewish,”or

“Jewishpeople,”theresultsareinformativeandrele-

vant.Sowhyisasearchfor“Jew”different?Onerea-

sonisthattheword

“Jew”isoftenusedinan

anti-Semiticcontext.Jewishorganizationsaremore

likelytousetheword“Jewish”whentalkingabout

membersoftheirfaith.Thewordhasbecomesome-

whatchargedlinguistically,asnotedonwebsites

devotedtoJewishtopicssuchasthese.32

NotallJewishpeopleobjecttobeinglabeledasJews,

andnotallbelievethatGoogleshouldblockthesite.

“Someresponsibilityforthisneedstorestonourown

shoulders,”saidJonathanBernstein,aregionaldirector

oftheAnti-DefamationLeague,“andnotjustacompany

likeGoogle.Wehavetoprepareourkidsforthingsthey

comeacrossontheInternet.Thisispartofthenatureof

anInternetworld.Thedisadvantageisweseemoreofit

andourkidsseemoreofit.Theadvantageis,wesee

moreofit,sowe’reabletorespondtoit.I’mnotsure

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GOOGLESPEAKS

whatpeoplewouldwanttoseehappen.Youcouldn

’t

reallyaskGooglenottolistit.”33

GoogleWatchwrote:“It’snotthatwebelieveGoogleis

evil.WhatwebelieveisthatGoogleInc.isataforkin

theroad,andtheyhavesomebigdecisionstomake.”34

(Formoreonthedebateregardingrightandwrong,

seethechapter“GoogleGrowsUp.”)

MAKEITFREE

Googlehasahistoryofenteringbusinessesinwhich

othercompaniesareengaged,butofferingtheservice

free.Thisispossible,duetothecolossalrevenues

Googlecollectsfromrelevantadvertising.

“Frankly,”

saysEricSchmidt,

“thefreeservicemodelwith

free

advertisingisstillthebestmodel.

”35Theadvertising

itselfisn’tfree,ofcourse,butitisreasonable.

Overtime,Googlehaschallengedalmostallthemajor

playersinthesoftwareandInternetworld,andtruly

frightenedthecompetitorswiththefreebies.Google’s

productivityprograms,whichoperatefromtheWeb,are

adirectattackonMicrosoft.Microsoftisn’ttheonlycom-

panythatfeelscompelledto

takeadefensivestance

whereGoogleisconcerned.GoogleBase—acollection

ofsoftware

—threatenedcraigslist,eBay,Monster,and

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Tribe.net.GoogleBooksfrightensauthors,publishers,

bookstores,andespeciallyAmazon.

Someofthecomplimentaryprogramsdon’tseemto

havemuchimpact.Googleofferedafreecouponpro-

gramtoitsadvertisers,linkedtoproductandservices

searchesusingGoogleMaps.Fewcompaniesusethe

service.

Inmanycasesitisn’tclearwhyGoogleisofferingthe

no-chargeservices.GoogleVoiceLocalSearch,acti-

vatedbycallingtoll

-free1

-800-GOOG-411,hasno

apparentadvertisingattached.Atbest,itseemslikean

experimentinvoice-activatedsearch.

Evenso,Google’scost-

freeprogramscreatebuzzand

goodwill.Justintimeforthe2008BeijingOlympics,

Googleannouncedamusicsearchanddownloadserv-

iceinChina—free,ofcourse.

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GoogleCulture

Companyculturesarelikecountrycultures.Nevertrytochange

one.Try,instead,toworkwithwhatyou’vegot.1

—PeterDrucker,lateauthorandmanagementguru

TheGooglewebsiteproclaimsthatalthoughthecom-

panyhasgrownrapidly,itmaintainsasmall-company

feel.Thatiswishfulthinking.Googleplexisacolorful,

compellingcampus,butwithitsdozensofbuildings

spreadoverahalf-dozen

cityblocks,itisanythingbut

intimate.

WhenaskedhowGooglehadchangedsinceitsincep-

tion,DirectorofTechnologyCraigSilversteinsaid:

“IusedtoknoweveryoneatthecompanyandnowIdo

not.Itmakesmesad.”

Googleissupportedbyworkersinscoresofoffices

aroundtheUnitedStatesandtheworld.TheSanta

Monicaofficedefinitelyhasthelookandfeelofabranch

148

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GoogleCulture149

office.ThereisnothingcozyabouttheEuropeanhead-

quartersinDublin—twohigh-risesinanindustrialarea.

Giventhewebsite’sachievements,itwasboundtohap-

pen.Googlehasoutgrown

thisdreamoffeelingsmall

whilebecomingmassive,butthecompanymaintainsa

distinctiveculture,nonetheless.

Eventhoughtheculturehaschanged,Silverstein

added,“thebasicprinciplesthatunderlieGoogleboth

intermsoftheproductsandhowweruninternallyasa

companyhavenotreallychangedsinceitstarted.

”2

Silversteinsaysthecompanystillbelievesworkshould

befunandthatitremainsatechnology

-focusedand

-drivencompany.

LarryPagebelievesthataslongasGoogleorganizes

itselfintonaturalor“right-sized”workinggroups,the

company’sspiritandculturewillhold.

Sergey,ontheotherhand,

says,“Iactuallydon’tthink

keepingthecultureisagoal.Ithinkimprovingthecul-

tureis.Weshouldn’tbelike,lookingbacktoourgolden

yearsandsay,‘Oh,Iwishitwasthesame.’”3

NEWMANAGEMENTSTYLE

Theirventurecapitalistscloselywatchedtheyoung

businessenterprise

’sdevelopmentandpressedthe

founderstoaddanothermembertotopmanagement,

butSergeyandLarrytooktheirtimerecruitingachief

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GOOGLESPEAKS

executiveofficer.Eventuallytheyfoundonewhosuited

them.Atfirst,theydidn’tgivehimthechiefexecutive’s

title,butintime,EricSchmidttookontheCEOposition,

withtheGoogleboysservingasco-presidents.Schmidt

handlesalmostallthekeyreports.LarryandSergeyare

thenfreetopursuethecreativesideofthebusiness.

Thisdoesn’tmean,

however,thatBrinandPagewere

willingtorelinquishcontrol.ItisunderstoodatGoogle

thatthefoundershavethefinalsayonallmajordeci-

sions.Apparently,gettingtheweigh-ingetsmorediffi-

cultasthepresidentsbecomeincreasinglybusy.

LarryexplainedhowthetriumviratethatrunsGoogle

works:

ErichasthelegalresponsibilitiesoftheCEOand

focusesonmanagementofourvicepresidentsandthe

salesorganization.Sergeyfocusesonengineeringand

businessdeals.Ifocusonengineeringandproduct

management.Allthreeofusdevoteconsiderabletime

tooverallmanagementofthecompanyandotherfluc-

tuatingneeds.4

“Thegoalofthecompanyisnottomonetizeeverything.

Ourgoalistochangetheworld.Monetizationisatech-

nologytopayforit,”5saysEricSchmidt.Andyet,two

wordsheardrepeatedlyaroundGooglearescaleand

monetize.Thesewordsspeaktothequestions,Can

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aserviceortechnologybegrownbigenoughtomakeit

worththeeffort,andcanitbemadeprofitable?

Googlehasfacedthesameproblemsthatotherfast

-

growingstartupshaveencountered.Amongthemare

howtomanagegrowthwithoutlosingyoursoul;howto

keepideasfresh;andhowtokeepbrightemployeesand

avoidhiringmediocrepeople.

DavidFriedberg,afoundingmemberofGoogle’scor-

poratedevelopmentteam,explainedthatgoodhiringis

keytoGoogle

’ssuccess.

“Therearecertainkindsof

peoplewhereit’snotaboutthemoney.AndGooglehires

thosekindsofpeople.”FriedbergleftGoogletostarthis

ownInternetcompany,WeatherBill.6

Afterthecompanywasafewyearsold,Sergeyand

Larryrealizedtheirmanagementstructurehadbecome

toocomplex.Byautumn2001,thecompanyfelttop

-

heavyandunwieldy.Theycalledtheirengineering

managerstoameetingandtoldthemtheywereoutof

jobs.Mostgothiredinotherdepartments.Thecompany

wasreorganizedintosmallteamsthatattackedhun-

dredsofprojectsallatonce.

Thefoundersgivetheemployeesgreatlatitude,and

theytakethesamelatitudeforthemselves.Sometimes

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GOOGLESPEAKS

theyshowupunexpectedlyforthewrongmeeting.

Sometimestheydisappearentirely—zoomingawayin

thecorporatejetortakingabreaktogokitesurfing.7

Althoughtherearemeetings

goingonalloverGoogle

campusesallthetime,TerryWinograd,Larry’sacademic

advisoratStanford,says,“LarryandSergeybelievethat

ifyoutrytogeteverybodyonboarditwillpreventthings

fromhappening.Ifyoujustdoit,otherswillcome

around

torealizetheywereattachedtooldwaysthatwerenot

asgood—noonehasproventhemwrong—yet.”8

EricSchmidtsaysthatGooglemerelyappearstobe

disorganized.“Wesaywerunthecompanychaotically.

Werunitattheedge.”9

EricSchmidtsaysthatcuriosityandprobingplayalarge

partinGoogle’smanagementstyle.

Amongthefrequentlyaskedmanagementques-

tionsare:

•Howdowemaketheproductswehavethemost

useful?

•Whatisthebestlong-termpathforthecompany?

•Whatarethenextbigbreakthroughsinresearch?

•Howisthecompetitionaffectingourbusiness?

“Outoftheconversationcomesinnovation,”Schmidt

notes.“InnovationisnotsomethingthatIjustwakeup

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GoogleCulture153

onedayandsay‘Iwanttoinnovate.’Ithinkyougeta

betterinnovativecultureifyouaskitasaquestion.”10

DespiteLarryandSergey’squick,smartpersonalities

andtheirrollerbladingapproachtobusiness,David

Friedbergsaidtheyneverforgotthattheywererun-

ningacompany.“Attheendoftheday,itisacompany

andthereareproducts,andyouhavetodeliverthe

products.”11

TENTHINGSGOOGLEHASFOUNDTOBETRUE

WhenacompanygrowsasmadlyasGooglehas,itis

usefultohavesimplebutgrandguidingprinciplesto

keepeveryonemovinginthesamedirection.Employ-

eesfindthatthese10principles,displayedonGoogle’s

website(underCorporateInformation),helpthem

makedecisionsandproductsthattrulyareGoogly.

1.

Focusontheuserandallelsewillfollow.The

companystrivestoputtheuseraheadof

shareholderswhenmakingcorporatedecisions.

Additionally,Googlemakesthesepromises:

•Thewebsiteinterfacewillbeclearandsimple.

•Pageswillloadinstantly.

•Placementorrankinginsearchresultsisnever

soldtoanyone.

•Advertisingmustberelevanttothesearchand

notbedistracting.

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GOOGLESPEAKS

2.

It’sbesttodoonethingreally,reallywell.

“Googledoessearch,”thecompanyusedtosay.

AsGooglegrowsandlaunchesnewproducts,it

driftsfartherandfartherawayfromthismaxim.

Still,thecompanyclaimsthatotherproducts

suchasGmail,GoogleDesktop,andGoogle

MapsarejustpartofGoogle’sefforttoimprove

search.

3.

Fastisbetterthanslow.“Googlebelievesin

instantgratification,”itsays,addingthat“Google

maybetheonlycompanyintheworldwhose

statedgoalistohaveusers

leaveitswebsiteas

quicklyaspossible.”

4.

DemocracyontheWebworks.“Googleworks

becauseitreliesonthemillionsofindividualpost-

ingwebsitestodeterminewhichothersitesoffer

contentofvalue,”explainsGoogleonitswebsite.

Thishasalsobeenreferredtoas“thewisdomof

crowds.”

5.

Youdon’tneedtobeatyourdesktoneedan

answer.ThisiswhyGoogle

branchesintotech-

nologytomakesearchavailableonPDAs,on

mobilephones,andinautomobiles.

6.

Youcanmakemoneywithoutdoingevil.Thisis

themostdifficultand

controversialofGoogle’spre-

cepts.Foranexplorationoftheidea,gotothesec-

tion“Don’tDoEvil”inthechapter“TheVision.”

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7.

There’salwaysmoreinformationoutthere.

GooglehasindexedmoreWebpagesthan

anyothersearchservice,anditcontinuallyadds

moresearchablematerial.Thisisnotonlydesira-

ble,itisnecessaryastheWorldWideWeb

expands.

8.

Theneedforinformationcrossesallborders.

MorethanhalfofGooglesearchresultsaresentto

usersoutsidetheUnitedStates.Searchresultsare

availableinapproximately118languages,and

Google’stranslationservicesimprovecontinually.

9.

Youcanbeseriouswithoutasuit.Nothingproves

thatmorethanSergey’sandLarry’sattire.Most

oftentheyareseeninLevi’sandt-shirts,some-

timeswearingCrocsandals.Eventheheadoftheir

Parisoffice,workingfromaclassyaddressnear

theopera,wearsLevi

’stowork.Recentlythe

Googleboyshavebeenknowntothrowsports

jacketsovertheirt-shirts.

10.

Greatjustisn

’tgoodenough.Googletellsits

employees,“Alwaysdelivermorethanexpected.”

Googledoesnotacceptbeingthebestasanend-

point,butastartingpoint.

(Note:TheTenTrueThingsareGoogle’s.Theexpla-

nationsareadaptedfromGoogle’swebsiteandother

sources.)

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GOOGLESPEAKS

RIDINGTHELONGTAIL

“Ourbusinessmodelisthelongtail,”saidoneGoogle

employee.“Managementtalksaboutitallthetime.”12

Long-tailmarketing,whichwasfirstpracticedby

Sears,Roebuck&Companywithitsbigwish-bookcata-

logs,hasbeendevelopedtoadouble

-banglevelby

Internetmarketingcompanies

—Googleinparticular.

Thelong-tailmodelgetsits

namefromstatisticalcurves,

suchasthefamiliarbellcurveortheParetocurve.

Thecurvestartsatzeroandrisestoapeak,thendrops

andflattens.Butitalmostneverreturnstozero.Thetail

endofthecurvemayleveloutandgoonseemingly

forever.

Insalesormarketinggraphs,thetopofthecurvetyp-

icallydescribesacompanythathashighsales,butusu-

allywithalimitednumberoftop

-sellingproducts.

Long-tailInternet

companies,whichcansellfromhuge

inventoriesbecausethey

’renotactuallywarehousing

thegoods,mayindeedmakemoneyfromsellingthe

mostpopularproducts,buttheyalsohavethecapacity

toextractendlesssalesfrom

morespecialized,obscure,

evenweirdproducts.Inhisbook,TheLongTail:Why

theFutureofBusinessIsSellingLessofMore,Chris

Andersoncallsthis“marketswithoutend.”13

EricSchmidtexplainedatthecompany’sfirstannual

meetingin2004thatGoogle’sadvertisingprogramwas

solucrativebecauseitcapturesthehighendofthe

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curve,byservingthefewlargeadvertisers,andthen

followsthetailbyservingthemillionsofsmalladvertis-

ersallthewaydowntoaone-personoperation:

Thesurprisingthingaboutthelongtailishow

longthetailis,andhowmanybusinesses(atthefar

endofthetail)haven

’tbeenservedbytraditional

advertisingsales.Therecognitionthatbusinessessuch

asoursshowaParetodistributionappearstobea

muchdeeperinsightthatanyonerealized.

OnceGooglemanagementunderstoodhowmuchofthe

curve(especiallythemiddle)couldbetappedandmax-

imized,itfoundanamazingnumberofwaystoplaythe

long-tailgame.

20PERCENTPROJECTS

“Weencourageouremployees,inadditiontotheirreg-

ularprojects,tospend20percentoftheirtimeworking

onwhattheythinkwillmostbenefitGoogle,”saysLarry

Page.“Thisempowersthemtobemorecreativeand

innovative.Manyofoursignificantadvanceshavehap-

penedinthismanner.For

example,AdSenseforCon-

tentandGoogleNewswerebothprototypedin

‘20

percenttime.’Mostriskyprojectsfizzle,oftenteaching

ussomething.Otherssucceedandbecomeattractive

businesses.”14

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GOOGLESPEAKS

Themuch-applaudedfree-timeprojectsgiveemploy-

eesasenseofautonomy

—onewayofkeepingsmart

peoplecommittedasthecompanygrowsmorebureau-

cratic.“Ascompaniesgrowlarger,it’smoredifficultto

allowpeopletobecreative,”acknowledgedCraigNeville-

Manning,Google’sengineeringdirector.15

Sadly,astheworldbusinesswentintoadeclineand

Googleprepareditselftoweathertheeconomicstorm,

therewereindicationsthatthe20percenttimesmight

becurtailed.Schmidtsaidthatengineersmaynotgeta

lotoftimeandalotofpeopletoworkondreamprojects.

“Whenthecyclecomesback,”hesaid,“wewillbeable

tofundhisbrilliantvision.”16

Intheautumnof2008,Googleexecutivesandanumber

ofstateandlocalpoliticosgatheredatGrandCentral

TerminaltoadmireademonstrationofoneofGoogle’s

mostpopular20percentprojects—Googlemapsforthe

publictransitsystem.

Googlewasallowedtoinstalltendemonstration

kiosksinthetrainstation

showingthebestwaystoget

aroundNewYorkCity

’ssprawling5,000

-square-mile

subway,bus,andtrainnetwork.

Thepublictransitmappingsystemwasfirstintro-

ducedin2006,andLosAngeles,CaliforniaandAustin,

Texasweresoonaddedtothecitieswhereitwas

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available.Thegreater

challengecomesasthemore

complexurbanareassuchasLondon,Tokyo,andParis

aremapped.

TheprojectwasthebrainchildofCalifornia

-based

AvichalGargandChrisHarrelson.WhenNewYork

transit

offeredGoogletheinformationneededtocreatethemaps,

GargandHarrelsonweren’tpreparedforthesheervol-

umeofmaterialtheywouldreceive.Theyweren’tsure

theyshouldcontinuewithit.MarissaMayer,Google’s

vice

presidentforsearchproductsanduserexperience,told

them,“Justtakethedata.”17Theprojectgotdonewith

cooperationfromemployeesinEuropeandJapan.

PERPETUALBETA

It’snotexactlyamotto,but

it’saphrasefrequentlyheard

inGooglecircles:“Launchearly,iterateoften.”

Googlesometimesischidedforreleasingmostofits

productsinbeta,orduringdevelopment,andkeeping

themthereforalongtime.Ontheminusside,this

makesitseemthatGoogleengineerscan

’tperfecta

product;theyrelyontheuserstodothatforthem.It

alsoservesasausefulexcuseifaproductisflawed.It’s

stillinbeta,afterall.

Ontheplusside,userstend

todoagoodjobatper-

fectingproducts,andGooglecanusethepolicytomain-

tainahighlevelofinnovation.

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GOOGLESPEAKS

“Theideathatyou’recontinuallyimprovingtheprod-

uct,thatyou’recontinuallyadvancingit,Ithinkiscriti-

caltotheworldoftechnology,andthekindofconsumer

technologythatGoogledoes,

”saidPaulBuchheit,the

leadengineerwhodevelopedGmailforGooglebefore

foundinghisownstartup,FriendFeed.

Iftheyjuststandstill,they’regoingtoveryquicklylose

theirposition...butbeyondthat,there’stheriskthatas

aninstitutionyoucanforgethowtoinnovate,which

canbedeadly,becausenewcompetitorscancomealong

andyouwon’tbeabletocatchupwiththembecause

you’veforgottenhowtoinnovate.It’scrucialthatacom-

panymaintainsacontinual

cultureofinnovation.18

FABLEDWORKPLACE

Fortuneisjustoneofseveralpublicationstohaverated

Googlenumberoneonitslistofbestplacestowork.

Googlehasbecometheworld’semployerofchoice,

themarkofanewand

desiredworkenvironment,

andtheidealagainstwhichothercompaniesaremeas-

ured.Andwhynot?Despitetheliberalsharingofprofits

andaslowdownintheworldeconomy,Googlecontin-

uestodointerestingworkandmakemoney.

Dependingontheofficelocation,thecompanypro-

videslaundryequipmentforallthosebluejeansand

t-shirts.Employeescangethaircuts,havetheoil

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changedintheircars,andgetworkoutswithinaquick

walkfromtheirdesks.Therearemassages,volleyball

courts,swimmingpools,andfood—lotsoffood.Google

evenhasitsowncricketclubatitsofficeinHyderabad,

India.

DressingcasuallyisalmostarequirementatGoogle.

Mostworkers,includingthoseinFranceandIreland,

wearbluejeanstowork.Despitethecasualatmosphere,

EricSchmidtsaysthattheruleis,workersmustat

leastwearsomething.The

styleisbestdescribedas

“disheveledstudent.”19

GoogletakesprideinitsEmployeeResourceGroups

(ERGs)suchasGoogleWomenEngineers,BlackGoogle

Network,andevenGayglers.Gayglersincludethecom-

pany’sGLBT(gay,lesbian,bisexual,andtranssexual)

employees.“Google’sERGs,”writesthecompanyonits

website,

“createnetworkswithinthecompanythat

reachacrossfunctionalandnationalboundariesto

strengthenthecompany’sretentionprograms.Theypro-

videvaluablefeedbackabouttheworkingsofGoogle’s

HRprogramsandpolicies,aswellasprovidevaluable

opportunitiesforpersonalgrowthandprofessional

development.”

Thentherearethestockoptions.Theselucrative

perkspresentadilemmainthattheybothkeepemploy-

eesatthecompanyandeventuallyallowthemtofly

awayandeitherlivefreeorstarttheirownbusinesses.

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GOOGLESPEAKS

Oneemployeesaidheappreciatesalloftheperks,

butwhatheenjoysmostisworkingwiththebestand

brightestpeopleinhisfieldinacollegial,cooperative

atmosphere.StanfordPh.D.saresocommon,he

said,thatthosewhohaveearnedthemdon

’tget

muchinbraggingrights.“Itrainedasabusinessana-

lyst,”heexplained.“WhenIjoinedGooglemycompu-

terskillsweren’tonaplanewiththeengineers.Butthey

weregreatinhelpingmelearnwhatIneededto

know.”

TheGoogleworkplaceoftodayisshapedbymany

factors—theexpectationsofLarryandSergey’sgenera-

tion,thecompany’slocationinSiliconValley,andan

academic-richenvironment.Eventhepersonalhisto-

riesofthefounderscarryweight.LarryPageplaces

enormousimportanceonbeingagoodemployer.

“Mygrandfather,

”explainedPage,

“workedinthe

autoplantsinFlint,Michigan.Hewasanassembly-line

worker.Duringthesit-downstrikesheusedtocarry

thislongironpipewithabigchunkofleadontheend

whenhewalkedtowork.”20Hedidit,Pagesaid,topro-

tecthimselffromthecompany.“Istillhavetheham-

mer.That’stwogenerationsago,andwe’vecomealong

way.Idon’tthinkanyofouremployeeshavetocarry

suchweaponstowork.”21

Many,includingPagehimself,contendthatGoogle

hasmuchtogainfromtreatingitsworkerswell.“It’s

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commonsense,”saysLarry.

“Happypeoplearemore

productive.”22

Googledidn’tinventthecasualworkplace.Ithasbeen

aSiliconValleytraditionformanydecades,butthecom-

panybroughttheconcepttonewlevels.TheGoogle

guyshavetriedtokeepthe

Googleworkenvironment

muchlikeacollegecampus,onlywithbetterservices.

SincethesoftwareandInternetcompaniesarecon-

stantlycompetingfortalent,whateverGoogledoes,

othercompaniesaremotivatedtodoaswell.

Notalloftheperksarepermanent,though.Google

onceoffereda$5,000subsidyforthosewhoboughta

hybridcar.WhileGooglewantedtoencourageclean

technologies,itwasneverthecompany’sintenttokeep

thesubsidyforever.23As

theeconomicdownturnof2008

hit,evenGoogletighteneditsbelt.

ANALTERNATIVEPOINTOFVIEW

AfterFortunenamedGoogleasthe“NumberOneBest

PlacetoWork”in2008,aformeremployeewhocalled

herself“Lisa”saidthisaboutworkingforGoogle:

Googleshouldnotbeonthislist.Iseeyouguysput

performanceofthecompanybeforeanythingelse.

Theperksarejustasmokescreen.Seriously.Iusedto

workthereanditwaslikepropaganda...theyused

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GOOGLESPEAKS

totellustospreadthewordconstantlytoourfriends,

etc.aboutthefreefood,massages!etc.

First,ifyouwanttodowellatthecompanyyoucan’ttake

alonglunch.Takingmorethanhalfanhourislooked

downupon.Andyoujustendupeatingatyourdesk.It’s

there,butnotreallythere.Asformassages,there’sasix-

monthwaitlisttoeven

scheduleoneandbythetimeit

rollsaroundthere’sa90percentchancethatyouwon’tbe

abletomakeitbecauseofascheduledmeeting,etc.

Lastly,themanagersarehorrendous.Thereisno

internalsystemofreviewing

them.I’veheardhorror

stories.24

Anotheremployee,whowishedtoremainanonymous,

didnotechoLisa

’scomplaint.Hefeltthathiswork

wasexcitingandimportant

andthatmanagementwas

accessible.However,hewasmorethananhourlatefor

adinnermeetingwiththeauthorbecauseevenat

6:30p.m.hecouldn’tgetoutofGoogleplex.Heisthefirst

toadmitthatworkinglonghoursisthenormforhim.

AGooglespokesmanofferedthisinsight:

“Itisa

workplace,afterall.”

GOOGLEPLEX

OnasunnydayinSeptember,oneoftheGoogledevel-

opmentteamswalkedoutof

Googleplex,thecompany

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GoogleCulture165

headquarters,andcrossedthegrassycampustoembark

onateam-buildingtrekalongtheSanFranciscoinner

bay.Astheyheadedouttothenaturepreserve,they

spottedameetinginprogressonaconferencebicycle,a

circularcontraptionthatallowsmultipleriderstopedal

andtalkwhilethefrontridersteers.Theyskirtedthe

busesthatlinedsurrounding

streets,waitingtoshuttle

thousandsofemployeesbackandforthtoworkfrom

homeswithin50milesofheadquarters.Theytooknote

ofaGooglepicnicsettingupinanadjacentpark,marked

byhugeballoonrainbowsinGooglecolors.Theywere

passedbyGooglersonbikesheadingtootherbuildings

onthesprawlingcampus.

Googleanditsculturehastakenoverthetown,espe-

ciallytheeasternedgeofhomeylittleMountainView.

Googlenowoccupies30buildingstherewithanexcess

ofthreemillionsquarefeetofofficespace.Thisismore

thanathirdofMountainView’savailableofficespace,

andthoughgrowthatGooglehasplateaued,

thecompanyhascontingentplansforevenmoresquare

footageifneeded.Because

manyofGoogle’sbuildings,

includingitsheadquarters,areonlandleasedfromthe

city,theyarewelcometenants.In2007,MountainView

receivedabout

$3.8millioninrevenuefromGoogle

leases.25

IfLarryandSergeyarethetwinKingArthursofthe

techworld,GoogleplexisitsCamelot.Itservesasa

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GOOGLESPEAKS

modernroyalcourt.Googleplexisloadedwithameni-

tiesthatappealtoyoungoryoung-in-brainGooglers.

Thereisasandvolleyballcourtandcrazyoutdoorart.

Googleevenhasitsownlifeguards.MountainView

ordinancesrequirethemforthetwoswim-against-the-

currentpools.

Employeescangetfull-timemedicalcareandfree

physicals,andtherearedesignatedprivatespacesfor

nursingmothers.Thecompanyonceofferedlow-cost

childcare,butthepricewentuponthat.Orhowabout

anapononeofthestrategicallyplacednappads?Work-

erscanbringtheirdogs,aslongasthemuttsbehave.If

itseemsasthoughGooglersdon’thavetimetowork,

checkouttheMcDonald

’s-stylepitfilledwithmulti-

coloredplasticballs.It’sthereforholdingmeetings.

Mostofall,Googleplexisknownforitsfreeandfabu-

lousfood.Therearesnackrackseverywhere,three

gourmetmealsaday,andhomefooddeliveryfornew

parents.26ItisestimatedthatGooglewasspendingas

muchas$72millionayearfeedingemployees,atabof

approximately$7,530perGoogler.27

Itbecameamajorcrisiswhenitsoriginalexecutive

chef,CharlieAyers,lefttostarthisownrestaurant.

Googlespentthreemonthstryingtofindareplacement

forCharlie,whoonce(occasionally)cookedforthe

GratefulDead.Googlefoodisimaginative,tosay

theleast,andeveryonewantedittostaythatway.One

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GoogleCulture167

cheftryingoutforAyers’jobservedsugar-piepumpkin

lasagnaandcedarspringlambchops.

Evenwithoutallthepampering,freebies,andtoys,

Googleheadquarters,infuturisticbuildingsthatonce

housedSiliconGraphics,isapleasantplacetowork.A

vegetablegardengrowsinthecentralquad,withthe

outputusedinthecafeterias.

Larry,adevotedgadgeteer,oncerodeaSegwayper-

sonaltransporteraroundthecampus.Segwayswere

firstreplacedbyelectricscootersandthenbybicycles.

Needlesstosay,thebicyclesarecheaperandmoreenvi-

ronmentallysound,andtheybecameespeciallyimpor-

tantasworkersfoughtthe“

Google10(or20)”pounds

theygainedeatinginthecafeterias.

Itiseasytofindthecafeteria,thelavalamps,andthe

lapdogsatGoogle’sMountainViewheadquarters,but

it’snotaseasytofindthe

subtlyhidden-awayofficesof

SergeyandLarry.

TheofficelongsharedbyLarryandSergey,withEric

Schmidtnearby,istuckedintoacornerofBuilding

Number43.Theirspaciousworkhomeispredictably

deckedoutwithsnazzytechnology.Rowsofflat-screen

monitorslinethewallswithelectroniccalendars,e-mail,

financialinformation,andtheGooglesearchengine.

Thefoundershavemedicineballsforergonomicsand

massagechairsfor

relaxation,pluswindowsonthebus-

tlingworldofGooglebelowthemandoutside.

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GOOGLESPEAKS

GOOGLEINIRELAND

NotallGooglefacilitiesareasglamorousandfree-

wheelingasGoogleplex.TheSantaMonicafacilityisa

standardSouthernCaliforniaofficebuilding,although

Google-stripedumbrellasfluttergailyonarooftoppatio,

andtheofficeisalluringlynearthebeachandfamed

SantaMonicaPier.

PerhapstheDublin,Ireland,officebestepitomizes

whattheGoogleculturehasbecomeintheworld.

Google’stwintowersriseaboveasmallstreetinDub-

lin’sformerlyderelictDocksidearea.Justafewyears

ago,theneighborhoodwasnothingbutafewscattered

smallbusinessessurroundedbydecayingwarehouses.

TheareacametolifeaftertheIrisheconomyexploded.

WiththeadventoftheCeltic

Tiger,newbusinesseswent

lookingforbigger,moremoderndigsthanwereavaila-

bleinotherpartsofthelovelyGeorgiancity.

MostGooglefacilitiescanbeidentifiedbythetelltale

stripedumbrellas.TheDublinofficeisanotable

excep-

tion.TheIrishweatherdiscouragesoutdooreating

spaces.Onmanydays,Googlershuddleindoorwaysand

buildingoverhangs,smokingoutofthedrizzle.Here,as

inCalifornia,theworkforceisyoung,intense,andinvar-

iablydressedinLevi’sandt-shirtsorsweaters.

Luredbyayoungandinternationalworkforce,notto

mentiongeneroustaxbreaks,GoogleopeneditsDublin

officein2004with150people.ItnowisGoogle’slargest

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facilityasidefromtheheadquartersinMountainView.

Asophisticatedglass-and-steelbuildinginthemiddleof

ahistoriccity,theEuropeanheadquartersisnowhome

to1,350employees.Dozensoflanguagesarespokenat

thetechcenter,andcolorfulflagsofmanycountries

hangfromtheceilings.

Nevermindthepaucityofsunnyoutdoordiningareas

andcolorfulumbrellas;GoogleIrelandstilldisplaysthe

requisitelavalamps,exerciseballs,andahugescreen

inthelobbythatshowssearchactivityasitoccurs

aroundtheglobe.

Google,likeotherU.S.companiessuchasFacebook

andDell,wasdrawntoIrelandbecauseitoffersavery

lowcorporatetaxof12.5percent.Evenso,otherlevies,

suchasthetaxforhavingatelevisionset,canbequite

high.TherestaurantfoodtaxinDublin,forexampleis

around13percent,whilethetaxonalcoholicdrinks

isabout21percent.

Despitetheweatherandtheconsumptiontaxes,

GooglecontinuestoexpandinDublinanditsenvirons.

EvenduringtheIrishrecessionthatbeganin2007,

Googleaddedemployeesthere.

TOPTENREASONSTOWORKATGOOGLE

Whilesomeformeremployeesandcompanycritics

claimthatGoogleoverpromotesitsglossyworkplace

andstimulatingatmosphere,itisrefreshingtohavea

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GOOGLESPEAKS

companythatatleastthinkssomuchaboutthequality

ofworklifeandmakesavoluntaryefforttovalue

employeesandtreatthemwithrespect.ThisisGoogle’s

ownlistofemployeebenefits:

1.

Lendahelpinghand.Withmillionsofvisitorsevery

month,Googlehasbecomeanessentialpartof

everydaylife—likeagoodfriend—connectingpeople

withtheinformationtheyneedtolivegreatlives.

2.

Lifeisbeautiful.Beingapartofsomethingthat

mattersandworkingonproductsinwhichyoucan

believeisremarkablyfulfilling.

3.

Appreciationisthebestmotivation,sowe

’ve

createdafunandinspiring

workspaceyou’llbe

gladtobeapartof,includingon-sitedoctorand

dentist;massageandyoga;professionaldevelop-

mentopportunities;shorelinerunningtrails;and

plentyofsnackstogetyouthroughtheday.

4.

Workandplayarenotmutuallyexclusive.Itis

possibletocodeandpassthepuckatthesametime.

5.

Weloveouremployees,andwewantthemto

knowit.Googleoffersa

varietyofbenefits,includ-

ingachoiceofmedicalprograms,company-matched

401(k),stockoptions,maternityandpaternityleave,

andmuchmore.

6.

Innovationisourbloodline.Eventhebesttechno-

logycanbeimproved.Weseeendlessopportunity

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tocreateevenmorerelevant,moreuseful,and

fasterproductsforourusers.Googleisthetechnol-

ogyleaderinorganizingtheworld’sinformation.

7.

Goodcompanyeverywhereyoulook.Googlers

rangefromformerneurosurgeons,CEOs,andU.S.

puzzlechampionstoalligatorwrestlersandformer

Marines.NomatterwhattheirbackgroundsGoog-

lersmakeforinterestingcubemates.

8.

Unitingtheworld,oneuseratatime.Peoplein

everycountryandeverylanguageuseourprod-

ucts.Assuchwethink,act,andworkglobally—

justourlittlecontributiontomakingtheworlda

betterplace.

9.

Boldlygowherenoonehas

gonebefore.There

arehundredsofchallengesyettosolve.Yourcrea-

tiveideasmatterhereandareworthexploring.

You’llhavetheopportunitytodevelopinnovative

newproductsthatmillionsofpeoplewillfind

useful.

10.

Thereissuchathingasafreelunchafterall.In

fact,wehavethemeveryday:healthy,yummy,and

madewithlove.

THEBATTLEFORBRAINPOWER

Kai-FuLee,aChinese

-borncomputerscientist,got

caughtinGoogle/Microsoftcrossfi

reasthetwo

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GOOGLESPEAKS

companiesbattledforhisservices.LeewasMicrosoft’s

vicepresidentofinteractiveserviceswhen,in2005,he

wasluredawaytoestablishGoogleChina.Microsoft

suedGoogle,sayingthatLeewasinviolationofaone-

yearnoncompete-clauseagreementhehadsignedwith

Microsoft.ThecourtsallowedLeetogotoworkfor

Googlebutpreventedhimfromparticipatinginprojects

thatoverlappedwithMicrosoft’suntilthecasewasset-

tled.MicrosoftandGoogle

settledoutofcourt,andLee

stayedwithGoogleinChina.

AccordingtotheZdnetwebsite,Leewrotealetterin

Chineseexplainingthat

“Microsoftisanoutstanding

company,andtherearemanythingswecanlearnfrom

it.ButGoogleisacompanythatmakesmefeelashock.

ThereasonGooglegivesmeashockisthepassionfor

creatinganewgenerationoftechnology.Ifoundtreas-

uresinGoogleeverywhere.Thetechnologyandprod-

uctsarewaybeyondjustthesearch.”

Attheendoftheletter,Leegavehisformulaforwhy

Googlewashischoice:

youth+freedom+transparency+newmodel+the

generalpublic’sbenefit+beliefintrust=TheMiracle

ofGoogle28

TheInternetandallofitstrillionsofwebsites,

includingGoogle,representintellectualcapital.The

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tangibleassetsofcompanieslikeGooglearenegligible

comparedtotheirpreciousinventoriesofbrainsand

imagination.

LarryandSergey’sesteemforloftyacademicachieve-

mentwaspresentearlyon.Whentheyaddedmembers

totheboardofdirectorsin2004,Larryproudly

announcedtheircredentials:

JohnHennessyisthePresidentofStanfordandhasa

Doctoraldegreeincomputerscience.ArtLevinsonis

CEOofGenentechandhasaPh.D.inbiochemistry.

PaulOtelliniisPresidentandCOOofIntel.Wecould

notbemoreexcitedaboutthecaliberandexperience

ofthesedirectors.29

WhenGooglewasinitsinfancy,thebestsearchengine

aroundwasAltaVista.However,itsowneratthetime,

Hewlett-Packard,didn’t

seemtoappreciatethetalent

theyhadonboard.Googleendeduphiringmany

AltaVistaengineers,whomadeenormouscontributions

toGoogle’ssuccess.

OneofGoogle

’squietstrategieshasbeentolearn

fromearlierInternetfailures,especiallyNetscape.Both

EricSchmidtandOmidKordestanicametoGooglefrom

thatcompany,whichexperiencedawildridebothup

anddown.“Google,beingagenerationlater,wasable

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GOOGLESPEAKS

tolearnfromwhatNetscapedidwellandbuildonit,”

explainedKordestani.“Thebestdéjàvuisworkingwith

thedistinguishedNetscapealumniatGoogle.”30

Ina2005coup,GooglehiredWorldWideWebpioneer

VintCerfasvicepresidentanditsresident

“Internet

evangelist.”Cerf,formerlywithDARPA(Defense

AdvancedResearchProjectAgency),ofteniscitedasthe

“fatheroftheInternet.”AtGoogleheservesassome-

thingofafuturist,thinkingabout,anticipating,andpre-

dictingtheeffectsoftheWorldWideWebonsociety.

ChrisLavoie,aCanadianwhoexpectedtobecomea

universityprofessorbutnowworksatGoogleplex,said

itwasmentalstimulationthatdrewhimtoGoogle.

Lavoieexplained,“Ithoughtuniversitywaswherethe

hardestproblemswerestudied,buteverythingisbigger

hereandtheproblemsare

hardertosolve.Thescaleof

theWebandthesystemsfascinateme.Irealizedthis

waswherethebiggestthingswerehappening.”31Lavoie

getsthesamereactionwheneverhesaysheworksat

Google.“Jealousy.Universaljealousy.”32

Sinceitsfounding,Googlehasreceivedmorethan

fivemillionjobapplicationsfromthosewishingtowork

there.Googlehasdreamedupnovelwaystofindpeople

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GoogleCulture175

itconsiderscleverenoughtofilltheirjobs.Googleonce

erectedasignboardonRoute101,thecongestedcorri-

dorbetweenSanFranciscoandSiliconValley,withouta

logo,website,orobviousmessage.Itsimplyread:“{first

10-digitprimefoundin

consecutivedigitsofe}.com.”

Thosecleverenoughtosolvetheequationcameup

with7427466391.com.Whentheytypedthatnumber

intotheirbrowsertheywereledtoapagethatpresented

another,moredifficultproblem.Thosewiththe

correct

answergotashotataGooglejobinterview.

Thecompanyalsoranits“GoogleLabsAptitudeTest”

asadvertisementsinnerdytechpublicationssuchas

theLinuxJournal.Thetestincluded21complexmath

equationsandinsider-knowledgequestionssuchas“What

isthemostbeautifulmathequationeverderived?”33

Googleoftenacknowledges:

Employeesmaybemorelikelytoleaveusaftertheir

initialoptionsgrantfullyvests,especiallyiftheshares

underlyingtheoptionshavesignificantlyappreciated

invaluerelativetotheoptionexerciseprice.

Additionally,competitionforbrainsinthecomputer

worldisintense:“...weareawarethatcertainofour

competitorshavedirectlytargetedouremployees.”34

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GOOGLESPEAKS

Inanefforttokeepbrainsin-house,Googleestablished

aFounders’Awardforemployeeswhoshowextraordi-

naryentrepreneurialachievement.Theawards,inthe

formofstockgrants,wereworthagreatdealofmoney.

ThefirsttwoFounder

’sAwards,worth

$12million,

wereawardedtotwoteams

ofadozenorsoemploy-

eeseach.

Theinducementbackfiredbecausethosewhodidn’t

gettherecognitionfeltoverlooked.“Itendeduppissing

waymorepeopleoff,”saysoneveteran.Googleseldom

grantsFounders

’Awardsnow,preferringtodoleout

smallerprizes,sometimesgivenduringapersonalvisit

fromPageorBrin.35

Alltheeffortstoretainknowledgeworkersaside,

manyGooglershaveleftthe

company,oftenbecause

theywantedtoheadtheirownentrepreneurialeffort.

AvichalGarg,aformerproductmanageratGoogle

andcofounderofastartupaimingatthetest-preparation

industry,PrepMe.com,says,“Googlewasjustamassive

explosionandsuckedinallthistalent.”Butnow,“Allof

thesepeopleareleavingwhoarerelativelyyoungand

endedupwithafairbitofmoney.Theydidn’twalkaway

with$20million,buttheywalkedawaywith$2million.

Andnowthecostofrunninganewcompanyissolow

thatessentiallyGooglefinancedtheirstart-up.”36

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GUARDINGTHESECRETS

Googlehasbeenandremainsasecretivecompany.Partofthe

firm’sreluctancetoengageinorgiesofpublicrelationsiscom-

monsense.MountainView,Calif.isopenbutalsoclosed.Thecul-

turespawnedAndyGrove

’sbest

-selling

“OnlytheParanoid

Survive:HowtoExploittheCrisisPointsthatChallengeEvery

Company.”Dr.Grovepopularizedtheimportanceofchaos,which

obscuresunderlyingintent.Whenpublished,MssrsBrinandPage

wererevvingGoogle’sengines,andtoomuchchatteraroundthe

Googletechnicalsecretingredientswasunnecessary.37

—StephenE.Arnold,authorandtechnologyconsultant

LarryandSergeyspelleditoutwhentheywentpublic:

Asasmallerprivatecompany,Googlekeptbusiness

informationcloselyheld,andwebelievethishelped

usagainstourcompetitors.But,aswegrowlarger,

informationbecomesmore

widelyknown.Asapublic

company,wewillofcourseprovideyouwithallinfor-

mationrequiredbylaw,andwewillalsodo

ourbesttoexplainouractions.Butwewillnotunnec-

essarilydiscloseallofourstrengths,strategiesand

intentions.38

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178

GOOGLESPEAKS

Googleisknownforbeingelusivewithreporters,even

thosecoveringlocal

MountainViewnews.

39Because

Googlehassuchalargepresenceinitstownand

becauseGoogleisapubliclyheldcompany,thelocal

newspaperfeelsthatcitizenshavearighttoknowat

leastsomethingaboutwhat’

sgoingonthere.TheMoun-

tainViewVoicecomplainedaboutGoogle’sinaccessibil-

ityina2007editorial:

Foryearsnow—atleastsincethecompanywentpub-

licandballoonedtoitscurrentsize—itscommunica-

tionswiththepublichavefallensomewherebetween

spottyandnon-existent.40

WhenthenewspapercontactedGooglewithstraight-

forward,noncontroversialqueries,theresponsewas

notfriendly.

“Themostcommonresponsewe

’ve

receivedisnoresponseatall.Thesecond

-most

commonresponseis,‘We’llgetbacktoyou’—followed

bysilence.”41

Theeditorialcontinued:

Ultimately,thecompanyishurtingitselfwiththiswall

ofsilence.Asaself-proclaimedorganizeroftheworld’s

information,Google’spositionandcontinuedsuccess

relyonthepublic’strustinitsmotivesandactions.

ThattrustcannotthriveunlessthepublicfeelsGoogle

isanopenandforthrightorganization.Nopublicacts

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GoogleCulture179

ofphilanthropyorenvironmentalfriendlinesscan

compensateforgoodold-fashionedaccessibility.42

Evenafteritwentpublic,Googlewasnotoriousfornot

returningtelephonecallsfromthefinancial

community

whowereseekingtounderstandandevaluatethebusi-

nessmodel.

Googlealsorefusestogiveearningsforecasts,andmuch

corporateinformation,toanalysts,whichultimatelyis

informationthatfiltersdowntoshareholders.Page

explainedinhislettertoshareholdersthatthisposition

isrelatedtomanagement’scommitmenttolong-term

planning,evenifthatmakesforerraticearnings:

Manycompaniesareunder

pressuretokeeptheir

earningsinlinewithanalysts

’forecasts.Therefore,

theyoftenacceptsmaller,predictableearningsrather

thanlargerandlesspredictablereturns.SergeyandI

feelthisisharmful,andwe

intendtosteerintheoppo-

sitedirection.

StephenArnoldwritesthatGoogle’ssecrecyispartofits

mystique:“MytakeonthisisthatGoogleisacompany

thatrequiresclosestudy.Thepublicstatementscapture

headlines,buttheinnerworkingsofGooglecontinueto

beshroudedinthejoyofinsidersecretsthatmathclub

membersenjoyedatmyhighschool.”43

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Google

GrowsUp

InlessthanadecadeGooglehasgonefromguerrillastartup

to800-poundgorilla.Insomeways,thecompanyisagentle

giant....Butthatdoesn’treducethefearfactorand

Google

knowsit.1

—KevinKelleher,Wired

HowdoestheGoogleoftodaycomparetowhatitwas

10or11yearsago?ForSergey,itisaboutgettingmore

sleep:

Onethingisthatwehave[10,000]to20,000peopleto

helpus.CertainlyIamnotpullingall-nightersallthe

timelikewewerewhenwereinthegarage,whenwe

wereonlythreetofourpeopledoingeverything.2

180

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GoogleGrowsUp181

Withoutquestion,Googlegrewupfasterthananycom-

panyinrecenthistory.Inadulthood,itnowfacesdiffi-

cultandmany-sidedquestions.Likeothergrown-

ups,

Googlelooksatitsresponsibilities,itscustomers,its

employees,andtosocietyasawhole.Italsomustcon-

tinuallyrefineandredefineitselfifthecompanyhopes

tocontinueitsleadershiproleintheInternetworld.

ProfessorJoelWestofSanJoseStatewarnsthatGoogle

growsmorelikeitsrivalMicrosofteveryday:

Googleisgrowingup,butitalsoisgraduallybureau-

cratizing.Canitgetpastthebureaucracyandstillbe

effective?ThishappenedatAppleandSteveJobshad

tocomebackandbreaktheculture.WillGooglebe

likeMicrosoft,dominantfortenyears,orlikeToyota,

dominantfor30years?Idon’thaveacrystalballto

tellmethat.3

CONFLICTSANDCONTROVERSY

Googleoftenhasblunderedintotroublesimplybecause

it’soperatinginsuchalarge,unfamiliar,anddiverse

world.Sometimesthesemisunderstandingsareeasyto

resolve,suchasonethatcameupinSoutheastAsia.

WhenapictureofKing

BhumibolAdulyandejof

Thailand,blendedwiththatofagiraffe,appearedon

YouTube,ThailandblockedYouTubeinthatcountry.

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GOOGLESPEAKS

NicoleWong,Googledeputygeneralcounsel,wentto

Thailandtohelpresolvetheissue.Hermeetingwasona

Mondaymorning,andshewasastoundedwhenshesaw

peoplewearingyellowshirtsandblousesinthestreets,

subways,offices,andmarkets.Theywereeverywhere.

Onthatdayoftheweek,Thaiswearyellowtohonor

thebeloved,81

-year-oldtitularheadoftheirnation.

WongrealizedimmediatelythatYouTubehadblun-

deredintoaculturalclash.Theoffendingimagewas

blockedinThailandbutwasavailableonYouTubeelse-

where.YouTubewasrestoredinThailand.

Otherconflicts,suchasthoseinvolvingfraud,por-

nography,privacy,advocatingviolence,and

human

rights,arethornier.

ClickFraud

Allofthesearchprovidershavebeenplaguedwithclick

fraud,thepracticeofmanipulatingthestatusofaweb-

site,eithertomakeasite

lookmoredesirableorto

causetroubleorrunupcostsforacompetingwebsite.

There’snoendtothemischief.Piggybackingand

conquestbuysalsooffendadvertisersanddistortthe

usefulnessofGoogleadvertising.Piggybackingoccurs

whensmalleradvertisersplantbrandnames,slogans,

ortrademarkedwordsinthetextoftheirownsearch

adstoluresurfersintheirdirection.Inaconquestbuy,

theadvertiseractuallybuysacompetitor’skeywordso

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GoogleGrowsUp183

thatitsownadislistedalongsidethatofthemostlegiti-

mateorlikelyuserofthekeyword.Keywordsaren

’t

usuallyexclusive.Sometimes

acompanywillrepeatedly

clickonarival’ssearch-engineadvertisementstodrive

upitscompetitor’scosts.

Fraudulentclicksarethemostvexingproblemfor

Googleadvertisers.Certainwebmasterscreatewebsites

tailoredtoluresearchersfromGoogleandotherengines

ontotheirwebsitetomakemoneyfromAdWordsor

AdSenseclicks.These

“zombie”sitesoftencontain

nothingbutalargeamountofshamcontent.Someare

splogs(spamblogs),whicharebuiltonhigh

-paying

keywords.Manyofthesewebsitesusecontentfrom

otherwebsites,suchasWikipedia.

AnotherformoftrickeryisaMadeforAdSense(MFA)

websiteorWebpage.Ithaslittleornorealcontent,but

isfilledwithadvertisementssothatusershaveno

choicebuttoclickonadvertisements.Suchpageswere

oncetolerated,butbecauseofthemanycomplaints,

Googlenowdisablessuch

accounts.

Someadvertisersclaimthat25to30percentoftheir

onlineadvertisingbudgetisdrainedoffbyclickfraud.

Theactualpercentagewouldvaryaccordingtoaccount.

Googleadmitsthatclickfraudisaproblemandcon-

stantlyworksinternallytoavoidit;thecompanyalso

saystheactualleveloffraudisn’tashighassomeadver-

tisersclaim.

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GOOGLESPEAKS

Googlehastakenvariousstepstominimizeorpre-

ventinvalidclicks.Somepublishersthathavebeen

blockedbyGoogleandothersreportreceivingalife-

longban.Thesesitesoftencomplainthatthepunish-

mentisunjustified,butGoogleclaimsitcannotdisclose

specificdetailsonclickfraud,sinceitcouldrevealthe

natureofitsproprietaryclick-fraudmonitoringsystem.

GoogleproductmanagerSalarKamangarsaysthat

thecompanyisvigilantandhasprosecutedclick-fraud

cases,butthatitbecomesmuchmoredifficultacross

internationalborders.Instead,Googleconcentrateson

spottingandpreventingthefraudinthefirstplace.

“Iwouldcharacterizethe

lossesduetoclickfraudas

small,”saidKamangar.

Wehaveasoftwaresystemthatfiltersoutfraudulent

clicksevenbeforeadvertisersgetbilledforthem.We

areconservativewithwhatwecount,andthrowout

anythingthatlooks

suspicious.Wealsohaveateamof

engineersandareconstantlylookingforwaysto

updatethesoftware.Wealsohaveateamofspecialists

investigatingreportsfromcustomersthatcontactus

andletusknowtheythinkthereisaproblem.4

Avoiding—orNotAvoiding—Pornography

InJanuary2006,theJusticeDepartmentrequestedthat

GooglehandoversearchdatatosupporttheBushadmin-

istration’sdefenseoftheChildOnlineProtectionAct

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GoogleGrowsUp185

(COPA),anInternetpornlaw.Itisoftenthecasethat

societies’mostseriousissuesarefoughtoversmut.In

thiscase,Googleneededtoprovethatitwouldprotect

customerprivacy.Thecompanyalsosaidthatreleasing

therequestedinformationcouldexposetradesecrets.

Googlefoughttherequestlegallyandwonincourt.

AnarticleinForbessuggestedthatGooglevigorously

defendedthecasenotsomuchtoprotecttheprivacyof

thoseusingitssearchengine,butespeciallytokeepa

lidonhowmuchmoneyitgathersfrompornography

searchandadvertising:

Apublicdisclosureofexactlyhowmuchpornography

isontheInternetandhowoftenpeoplelookforit—the

twodatapointsthatwillresultfromfulfilling

thegovernment’ssubpoena—couldservetomakethe

Internetlookbad.AndGoogle,asitsleadingsearch

engine,couldlooktheworst.5

Thearticlecontinues,“Googleanditscompetitorsall

benefitfrompornsites,whichhelpgeneratesearch

queriesandpageviews.ButGoogleistheonlyportal

companythatmakesnearlyallofitsrevenuesfrom

click-throughadvertising.

Restrictingpornandporn

advertising—thelikelyaimofCOPA’ssponsors—could

hurtGoogledisproportionately.”6

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GOOGLESPEAKS

Noneofthesearchenginesdiscloseshowmuchpor-

nographyisviewedthroughitssites.Infact,when

AmericaOnlinelistsitsmostcommonsearches,porn

referencesareliftedout.Pornographyorsexually

explicitsearchtopicsarenotseeninGoogle’sZeitgeist

reports,either.However,Nielsen/NetRatingssaidthat

pornsitesattracted38millionviewersinDecember

2007alone.Thisisone-fourthofallInternetsurfers.7

Webpornisbigbusiness.

About12percentofallweb-

sitesdealwithpornographyinsomeform,andworldwide

revenuesfromtheindustryareestimatedatmorethan

$97billioneachyear.AccordingtoNielsenOnline,about

one-quarterofemployeesvisitInternetpornsites

during

workinghours.M.J.McMahon,publisherofAVNOnline

magazine,reportsthathitsarehigherduringofficehours

thanatanyothertimeofday.

TheNationalCenterforMissingandExploited

Childrenestimatedin2003that20percentofallpornog-

raphytradedovertheInternetwaschildpornography,

andthatsince1997,thenumberofchildpornogra-

phyimagesavailableontheInternethadincreasedby

1,500percent.

YouTubehasbeencriticizedfordisplayingvideosthat

includechildpornographyand/orviolentsex.Somany

YouTubeusersarepostingsuchalargenumberofvideos

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GoogleGrowsUp187

eachdaythatitclearlyisdifficultforthecompanyto

policesuchmatters.However,aspokesmannoted:

ForYouTubewehavestrictrulesonwhat’sallowed,

andasystemthatenablesanyonewhoseesinappro-

priatecontenttoreportittoour24/7reviewteamand

haveitdealtwithpromptly....Giventhevolumeof

contentuploadedonoursite,wethinkthisisbyfarthe

mosteffectivewaytomakesurethatthetinyminority

ofvideosthatbreaktherulescomedownquickly.8

Googleitselfdoesn’ttrytokeeppornographyoutofthe

searchresults.Searchesofsexuallyexplicitkeywordsshow

plentyofsponsoredlinks,oradvertisements.Andper-

hapsitwasanaccident,butGoogleStreetViewonce

showedprostitutesgathered

onastreetcornerin

California.

However,theportaloffersafilterforthosewhowish

toprotectthemselvesortheirchildrenfromprurient

wordsandimages.Somecriticssaythefilterissocrude

thatitalsoeliminateswebsitesoftheWhiteHouse,

IBM,theAmericanLibraryAssociation,andclothing

manufacturerLizClaiborne.Googleconcursthatthe

filtererrsonthesideofcaution:

ManyGoogleusersprefernottohaveadultsites

includedintheirsearchresults.Google’sSafeSearch

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GOOGLESPEAKS

screensforsitesthatcontainthistypeofinformation

andeliminatesthemfromsearchresults.Whilenofil-

teris100percentaccurate,Google

’sfilteruses

advancedproprietarytechnologythatcheckskey-

wordsandphrases,URLsandOpenDirectorycatego-

ries.WhenSafeSearchisturnedon,sitesandweb

pagescontainingpornographyandexplicitsexual

contentareblockedfromsearchresults.9

ThosewishingtousetheblockercangotoGoogle.com,

typeSafeSearchinthesearchbox,andapopupappears

allowingSafeSearchtobeactivatedorswitchedoff.

Nevertheless,ifthefilterwerebetter,morepeople

mightuseit.“IfGoogleputsomeofitssmartpeople

onthistask,theycoulddoamuchbetterjobthanthey

havesofar,”saidBenEdelman,astudentfellowatthe

HarvardLawSchool

’sBerkmanCenterforInternet

andSociety.

“They’vegotalotofsmartpeople.It

wouldbeshockingiftheirgreatengineerscouldn’tdo

better.Thequestioniswhetherthat

’sapriorityfor

Google.”10

PRIVACYISSUE

“Privacyisdead,getoverit,

”famouslydeclaredSun

MicrosystemsfounderScottMcNealy.11

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GoogleGrowsUp189

Ononehand,Googlegoestocourttodefendtheprivacy

ofthoseusingitssearchengine.EricSchmidtempha-

sizesthatGoogledependsonthetrustofitsusers,add-

ing,

“Itwouldbeadisasterforthecompanyifthat

privacywerecompromisedbyaprivacyleakorsome

verybadgovernmentactionthatwecouldn’tstopunder

threatoftanks.”12

Ontheotherhand,Googlefrequentlyisaccusedof

invadingprivacythroughitsadvertisingprograms,its

mapapplications,itse-mailservice,andinotherways.

Google’s“Internetevangelist”VintCerfechoedMcNea-

ly’spointofviewinaspeechhegavetotheWashington

TechnologyAlliance’sannualluncheon:“...nothing

youdoevergoesaway,andnothingyoudoeverescapes

notice...thereisn’tanyprivacy,getoverit.”13

KenBoehm,chairmanoftheNationalLegalandPolicy

Center,disagreed:

“PerhapsinGoogle

’sworldprivacy

doesnotexist,butintherealworldindividualprivacyis

fundamentallyimportantandisbeingchippedawaybit

bybiteverydaybycompanieslikeGoogle.Google

’s

hypocrisyisbreathtaking.”14

Privacyisoneofthetopicsthatscarepeoplemost

aboutGoogle.“Googleknowsmoreandmoreaboutus,

butrightnowthere’salmostnothingwecandotofind

outexactlywhatitdoeswiththatinformation,”observed

FrankPasquale,anassociateprofessoratSetonHall

UniversitySchoolofLaw

andaproponentforreiningin

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GOOGLESPEAKS

Google.

“Wewanttomakepowerful

entitiesonthe

Internetaccountable.”15

WheneversomeonelandsonaGooglepage,theyget

acookieunlesstheyalreadyhaveone.Inthatcase,

GooglereadsandrecordstheIDnumber.Usingeven

moresophisticateddeep

packetinspectiontechnology,

Googlecanobserveauser’sentireWebbrowsingexpe-

rience,includingallURLsvisited,allsearches,and

actualpagesviewed.16

Thecompanyreallydidnotwanttospoilthepurityof

itsproudlysparsehomepage,

butduetopressurefrom

activists,Googlefinallyaddedanadditionalsevenlet-

ters.Theword?Privacy.Byclickingontheword,Google

userscancheckoutthecompany’sofficialstandonpri-

vacyissues.

ADVERTISINGPRODUCTS

TrackinginformationisakeypartofGoogle’sadvertis-

ingprograms.AdvertiserslovetheideathatGooglepro-

gramsallowthemtoverifyandanalyzeWebtrafficand

informationaboutthosewho

clickontheirads.

GeraldReischl,authorofaGermanbooktitledThe

GoogleTrap,isespeciallyconcernedabouttheinforma-

tioncollectedusingGoogleAnalytics,afreeprogram

forwebsiteownerstokeeptrackofusagepatternson

theirsite.Thedata,claimsReischl,isalsosavedby

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GoogleGrowsUp191

Google,andtransferredtotheUnitedStatesinviolation

ofGermanlaw.“AnalyticsisGoogle’smostdangerous

opportunitytospy,”saysReischl.17

HendrikSpeck,professorattheappliedsciencesuni-

versityinKatserslautern,saysthatcomparedwithwhat

Googlecollectsandknows,intelligenceagencieslook

“likechildprotectionservices.

”Theinformation,he

says,couldbeusedtotargetadvertisingmanyyears

intothefuture.And,hesays,“ThemoredataGoogle

collectsfromitsusers,thehigherthepriceitcanaskfor

advertisements.”18

AccordingtoPeterFleischer,

Google

’sParis

-based

GlobalPrivacyCounsel,Reischl’sconcernisunfounded.

“Wecollectalotofdata,”saysFleischer,“butnothing

thatidentifiesanyparticular

person.”19

Thedatacanbeused,however,toinfluencethe

behaviorofWebsearchers.Internetcompanieslike

GoogleandYahoo!havebeenexpandingtheuseof

so-called“behavioraltargeting”technologytotapvast

amountsofaccumulateddatainanefforttoboostadver-

tisingrevenue.

Behavioraltargetingcomesinanumberofpermuta-

tions,thoughallservethesamepurposeofexamining

whatInternetusersarevisiting,buying,andlookingfor

notonlyontheirsites,butalsoelsewhereontheWebin

ordertoconstructamarketingprofileforadvertisers.

Thepayoffcouldbeconsiderable.Themoreaccurately

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GOOGLESPEAKS

anadistargeted,themoreanadvertiseriswillingto

payforit.20

Effortstopreventclickfraudalsomightbeseenasan

invasionsofprivacy.AdSensepublisherscan

choose

fromanumberofclick-trackingprograms.Thesepro-

gramsdisplaydetailedinformationaboutthevisitors

whoclickontheads.Publisherscanusethistodeter-

minewhethertheyhavebeenvictimsofclickfraud.

GMAIL

“ThemostcommonlyvoicedfearisGoogle

’sunique

capacitytotrackwhatwe

’rethinkingbasedonwhat

we’relookingfor,”wroteTheBostonGlobe.“Googlecantrackeveryname,placeandtopicwesearch.ThecompanycanlearnevenmoreaboutpeoplewhouseGmail,

thesocialnetworkingsiteOrkutoranotherofGoogle’s

popularpersonalizedservices.”

UsingAdSensetechnology,Gmail,Google’sfreeWeb-

basede-mailservice,deliversadsintoe-mailmessages

linkedtothetopicofthee

-mailitself.Googleuses

atotallyautomatedsystemtolinkwordstotheirads,

butstill,ifthiscanbedone,itleavessomepeoplewith

thesneakingsuspicionthatGmailsnoopingalsocould

beeasy.

TheGmailprogramhasbeenwellreceived,despite

privacyconcerns.“Ourcompetitorshaven’tbeenable

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GoogleGrowsUp193

tomatchGmail’scleaninterfaceandhugepower,”says

Google.Wecurrentlyofferabout2.7GBofsearchable

storageforfree.Wealso

madeiteasiertosignupfor

Gmailbyusingyourmobilephone,whilemakingit

hardforspammerstogetaccounts.”21

STREETVIEW

Indignationoverprivacyhasbeenespeciallystrong

fromabroad.TheBritish

newspaperTheIndependent

wrote,

“Oneofitsnewventures,GoogleStreetView,

makesgovernmentCCTVsurveillancelookamateur.”22

Somepeoplebecamealarmedwhentheyrealized

GoogleStreetViewcamerascouldzoominsoclosely

thatinonecase,peoplecouldbeseeninsidethehouse.

AaronandChristineBoring,anAmericancouple,unsuc-

cessfullysuedGooglefor

$25,000forshowingtheir

houseonGoogleStreetView.

“I’mconvincedifyoulookattheactionsofGoogle,”

saidtheBorings’attorney,DennisMoskal,“foracom-

panythatsays‘don’tdoevil,’itappearsthattheydidn’t

haveproperinternalcontrolsonthepeopledriving

aroundtakingthesepictures.

”23

InitsresponsetotheBorings’lawsuit,Googlequoted

fromalegaltext:

Completeprivacydoesnotexistinthisworldexceptin

adesert,andanyonewhoisnotahermitmustexpect

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GOOGLESPEAKS

andenduretheordinaryincidentsofthecommunity

lifeofwhichheisapart.Itusuallyisnotagainstthe

lawtophotographahousefromthestreet,aslongas

thephotographerdoesnottrespassonprivate

property.24

ThesmallnorthernGermantownofMolfsee—notatall

happyattheprospectofbecomingpartofStreetView—

anticipatedthearrivalofGoogle’sfleetofdark-

colored

OpelAstraswithcamerasontop.Thephotographyvehi-

clesalreadyhadshownupinotherpartsofGermany,

snappingphotographsforGoogleStreetView.The5,000

citizensofMolfseetookfastaction,gettingthelocal

coun-

ciltopassaroadtrafficactthatwouldrequireGoogleto

getapermitforthepicture-taking.Localpoliticiansthen

refusedtoissuethepermit.OtherpartsofGermanywere

consideringenactingsimilarordinances.

“Thesepictures,whichareavailableforretrieval

worldwideovertheInternet,couldeasilybelinkedto

satellitephotos,addressdatabanksandotherpersonal

data,”warnedGermany

’sFederalCommissionerfor

DataProtection,Peter

Schaar.25

WhileGooglesoftwareapparentlyblurslicenseplate

numbersandfacessoastomakethemunrecognizable,

andanyonewhoappearsinapicturecanrequestthat

thepictureberemoved,thosesafeguardsdonotseem

tobeenoughformanypeople.StreetVieweasilycan

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provideotherdamaginginformation,and,especially

whencombinedwith

buildingsviewedfromaboveby

satellite,couldbequiteusefultostalkersoranyonewith

criminalintent.

InJapan,agroupoflawyersandprofessorsasked

GoogletosuspenditsStreetViewservicethere.“We

stronglysuspectthatwhatGooglehasbeendoing

deeplyviolatesabasicrightthathumanshave,”said

YasuhikoTajima,aprofessorofconstitutionallawat

SophiaUniversityandheadofTheCampaignAgainst

SurveillanceSociety.

“Itisnecessarytowarnsociety

thatanITgiantisopenlyviolatingprivacyrights,which

areimportantrightsthatthecitizenshave,throughthis

service.”26

GoogleCEOEricSchmidtknowshowitfeelstohave

hisprivateinformationsplashedallovercyberspace.In

2004,ElinorMills,areporterforthetech-newswebsite

CNET,decidedtodiscoverhowmuchpersonalinfor-

mationshecouldcollectontheInternetaboutSchmidt.

SheGoogledhimandlearned

Schmidt

’snetworth

($1.5billion),homeaddress(somewhereinAtherton),

andthenamesofhisguestsatapoliticalfundraiser.

ThemainguestswouldbeAlandTipperGore,who

dancedasEltonJohnbelted

out“BennieandtheJets.”

ShediscoveredthatSchmidtisanamateurpilotand,

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GOOGLESPEAKS

likeBrinandPage,has

cruisedtheBurningManFestival

intheNevadadesert.

Schmidtwasirate,insistingthecompanywould

blacklistallCNETreportersforayear.Inresponseto

critics,Googleendedtheboycottafteramonth.27

“Privacy,attheendoftheday,”notedEricSchmidt,

“ishowyoufeelaboutyourprivacy.PeoplefeelOKwith

adsaboutwhatyouaredoingbutnotaboutwhoyou

are.Privacywillbeanevergreenissue.”28

“WhatIwantinthe[Google]privacypolicy,”

saidHelen

Nissenbaum,professorintheDepartmentofMedia,Cul-

ture,andCommunicationatNewYorkUniversity,

“is

somethingthatsayswewilluseyourinformationx,y,

andz,andwewillnotuseit

foranythingelse,andwe

willneverchangethispolicy.”29

Privacymaynotbeascoldandburiedasitmight

appear:

•GoogleandacoalitionofotherInternetcompanies

signedanagreementto

safeguardprivateinforma-

tionandfreedomofspeechontheInternet.For

moreonthatpact,gotothesection“Hello,Human

Rights,”inthischapter.

•Google’stechsupportandprivacypagesprovide

instructionsonhowtoblock

awebsitefroma

searchengine,aswellashowtogetridofcached

orhistoricalversionsofthesite.

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•Inthepastfewyears,regulatorsinEurope,advo-

cacygroups,andotherseffectivelypressured

searchenginestolimitthetimetheyretainper-

sonalinformation.Ask.comnowofferssearchers

theoptionofhavingtheirinformationstoredforno

morethanafewhours.Yahoo!slashedthetimeit

storespersonaldatatothreemonths.Googlehas

trimmedthetimeitretainspersonalinformation

from18to9monthsandparedthelifespanofits

cookiesfrom30-plusyearsto2years.30

•TherearerumblingsintheU.S.Congresstopass

onlineprivacylegislationthatwouldgiveconsum-

erstherighttooptoutoftrackingoftheirWeb

activities.31

•ItalianPrimeMinisterSilvioBerlusconihasvowed

topushforaninternationalagreementtoregulate

theInternetandensuregreateruserprivacy.32

•Mostbrowsers,Google’sincluded,nowincorporate

aprivacyfeaturethatcoversaWebsearcher

’s

tracksontheInternet.Nottobefooledastoits

mostobviouspurpose,mosttechiesrefertothe

itemas“pornmode.”

CANTHEYSNOOP—ANDWILLTHEYTELL?

Theyhaveamassedmoreinformationaboutpeopleintenyears

thanallthegovernmentsoftheworldputtogether.Theymake

theStasiandtheKBGlookliketheinnocentoldgrannynext

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GOOGLESPEAKS

door.Thisisofimmensesignificance.Ifsomeoneeviltook

themover,theycouldeasilybecomeBigBrother.33

—AndrewKeen,British-bornauthor,

Internetcritic,andSiliconValleyentrepreneur

Googlefreelyadmitsthatitcollectsvarioussortsof

informationaboutusers.However,thecompanysaysit

doesnotcollectpersonalidentifyingdatasuchascredit-

cardinformation,phonenumbers,orbuyinghistory—

unlessausersignsupforaservicesuchasCheckout.

SinceGooglebeganemphasizingcloudcomputing,or

individualcomputingdoneonGoogle’sownwebsite,its

productspresentevenmoreopportunitiestosnoop.For

example,itsDesktopSearchindexesaclient

’sentire

desktopoffiles,whichmeanstheyarethensearchable.

However,theinformationisstoredonGoogle’swebsite.

Googlewarns,“Wemayshare[private]information..

.

[if]weconcludethatwearerequiredbylaworhavea

goodfaithbeliefthataccess,preservationordisclosure

ofsuchinformationisreasonablynecessarytoprotect

therights,propertyorsafetyofGoogle,itsusersorthe

public.”

Perhapsthemostscathingcommentsontheprivacy

issuecameina2004MotherJonesarticle:

SothequestionisnotwhetherGooglewillalwaysdo

therightthing

—ithasn

’tanditwon

’t!It

’swhether

Google,withitsinsatiablethirstforyourpersonal

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data,hasbecomethegreatestthreattoprivacyever

known,avastinformationalhoneypotthatattracts

hackers,crackers,onlinethieves,and—perhapsmost

worrisomeofall—agovernmentintentonfindingcon-

venientwaystospyonitsowncitizenry.34

“Howmanypeople,”asksSergeyBrin,“doyouthink

hadembarrassinginformationaboutthemdisclosed

yesterdaybecauseofsomecookie?Zero.Itneverhap-

pens.YetI’msure

thousandsofpeoplehadtheirmail

stolenyesterday,oridentitytheft.”35

Actually,thenumberoftimesinformationiscompro-

misedmaybesmall,butit’snotzero.Therewasacase

intheNetherlandsinwhichGoogledidnotspy,butits

applicationswereusedtosnoop.Achieftechnology

officerinstalleda“backdoor”serverinthecompany’s

hostingcenter,settingituptoforwardinformationfrom

acorporatedirector’se-mailtotheso-calledspybox,aGmailaccountusedasadocumentdrop.TheCTO

seemedtohaveinformationthatheshouldn’thavehad,

andeventuallyhewenttoofar:“...heforwardedpri-

vate(love)mailofoneof(thecompany’s)directorsto

hiswife.Sheprovidedthesee-mailstous,whichwere

sentfromananonymousGmailaccount.Their

marriage

wasalreadyheadingforadivorce,butthedisclosed

e-mailsanddishonorableallegationsaboutthevictim-

izeddirectorcreatedanunworkablesituation.”36

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GOOGLESPEAKS

ADutchcourtorderedGoogletorevealtheinforma-

tionassociatedwiththeaccount,andtheInternetPro-

vider(IP)addressusedtoaccessit.Theculpritwasthen

caught.Thecompany’slawyersaiditis“surprisinghow

easyitistoharassinnocentpeoplewithanonymous

(Gmail)accounts.TheverdictshowsthatU.S.

-based

GoogleInc.iswillingtocomply[with]Dutchlaw,

and

thattheprivacyofavictim‘overrules’theprivacyofthe

personwhodidwrong.Asitshouldbe.”37

HELLO,HUMANRIGHTS

“There’sasubtextto‘Don’tbeevil,’andthat’s‘Don’tbeillegal,’”saidVintCerf,oneofthefounding

fathersof

theInternet.CerfnowservesasthechiefInternetevan-

gelistatGoogle.38

WhenLarryandSergeyfirststartedontheirjourney

intotheworldofsearch,theyweredrivenandexcited

bythescienceandthe

possibilitiesthattechnologypre-

sented.Theymaynothaverealizedwhatvastpower

wouldbeassignedtoGoogleandsurelydidn

’tfully

grasptheresponsibilitythatwouldattendthatpower.

“Googlemaybethefirstentityhumankindhasever

knownwiththeglobaleconomicpowerandsocial

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influencetotaketheethicalhighroadandtreatfree

andopenexpressionlikeamoralabsolute,

”said

JonathanAskin,aBrooklynLawSchoolprofessorand

lawyerforInternetandtelecommunicationsclients.“If

Googledoesn’thavethewherewithaltoexertitsinfl

u-

enceforthegoodofhumanity,Idon’tknowwhowill

havethecouragegoingforward.”39

WorriesoverhumanrightsandInternetusageare

serious.In2006,Yahoo!Inc.turnedovere-mailsand

otherinformationtotheChinesegovernment,resulting

intheimprisonmentofjournalistShiTaoandwriter

WangXiaoning.Yahoo!laterapologizedfortheaction

andprovidedfinancialsupporttotheprisoners’fami-

liesandaskedtheU.S.governmenttointervene.

THEGREATCHINESEFIREWALL

Inthefallof2002,theChinesegovernmentbeganblock-

ingaccesstoGoogleandafewothersearchengines.

Theseenginescontained

variouswaysoffindinginfor-

mationtheChineseauthoritieswantedtokeepfromits

citizens.Withintwoweeks,theservicewasrestored,

because,accordingtosomesources,Chinesecitizens

wereoutragedbythe

blockage.NowwhenChinese

searchersclickonabannedlink,theyaredirected

insteadtoagovernment-approvedsite.

WhenGooglereenteredtheChinamarket—whichis

230millionpeople—thecompanydecidedtoabideby

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GOOGLESPEAKS

governmentcensorshiprestrictions,despiteanoutcry

frommanythatthecompanywasgivingintoagovern-

mentthatabusedhumanrights.

SergeyBrinadmittedthatitwaslegitimatefor

GoogletorefusetodobusinessinChina,giventhecir-

cumstances.But,headded,therewasanalternative

path.GivetheChinese

peopleatleastsomeaccessto

information,eventhoughinsomewaysitwouldbelim-

ited.InadditiontoGoogle.cn,theofficialsite,Brinnoted

thattheChinesepeoplealsohavetheoptionoflogging

ontoGoogle.com,wherethe

informationwouldbe

uncensoredbuttheservicewouldbemuchslower.At

lasttally,themajorityofChineseWebsurferswere

choosingtheslowerbutmoreinformativeservice.

“Wethinkwehavemadeareasonabledecision,

thoughwecannotbesureitwillultimatelybeprovento

bethebestone,”Brinsaid.“We’vebegunaprocessthat

wehopewillbetterserveourChineseusers.”40

“...Whenyouadditallup,wethinkwe’rehelpingto

advancethecauseofchangeinChina,”saidAndrew

McLaughlin,Google’sheadofglobalpublicpolicy.41

Chinesegovernmentofficialsexpressedtheirviewthis

way:“Anytradeandcommercialcooperationshouldbe

carriedoutwithintheframeworkoflaws.Wehopethat

therelevantcompanies,whenundertakingbusinessoper-

ations,canabidebyChineselawsandregulations.”42

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Perhapsitwaspurelyabusinessdecision,butlater

thesameyearGoogleannouncedamajorinvestmentin

Baidu,aleadingChinesesearchengine.

Otherrepressiveregimesalsohavetakenswipesat

Google.Foratime,IranshutdownGoogleblogsinthat

countrybecauseitdidnot

likethediscussiongoingon.

AccordingtotheReporterswithoutBorders(RSF)

“Internetenemylist,”thefollowingstatesengageinper-

vasiveInternetcensorship:Cuba,Maldives,Myanmar/

Burma,NorthKorea,Syria,Tunisia,Uzbekistan,and

Vietnam.

PRINCIPLESOFFREEDOM

Google,alongwithMicrosoft,Yahoo!,andotherInter-

netcompanies,signedavoluntarycodein2008spelling

out“principlesoffreedom

ofexpressionandprivacy.”

Theprinciplesarefairlygeneral,butiftakenliterally

couldbequitedifficultforInternetcompaniestoadhere

to.Still,thepactisagiantstepintherightdirection.

Microsoftexplainedinacompanynewsrelease:

FromtheAmericastoEuropetotheMiddleEastto

AfricaandAsia,companiesintheinformationandcom-

municationsindustriesfaceincreasinggovernment

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GOOGLESPEAKS

pressuretocomplywithdomesticlawsandpoliciesthat

requirecensorshipanddisclosureofpersonalinforma-

tioninwaysthatconflictwithinternationallyrecog-

nizedhumanrightslawsand

standards.43

AdiversecoalitionoforganizationslaunchedtheGlobal

NetworkInitiative,whichestablishesguidelinesfor

resistinggovernmenteffortstoenlistcompaniesinacts

ofcensorshipandsurveillance.Thegroupis

collaborat-

ingwithothercompanies,investors,civilsocietyorgan-

izations,andacademicstoestablishandimplement

PrinciplesonFreedomofExpressionandPrivacy,adoc-

trinebasedoninternationallyrecognizedlawsand

standardsforhumanrights.

MikePosner,presidentofHumanRightsFirst,said,

Intoday

’sworld,itisurgentforInternetproviders

andothercommunicationscompaniestochallenge

governmentcensorshipand

intrusionintopersonal

privacy.Thesepracticesoftenleadtotragicconse-

quencesforfrontlinehumanrightsactivists.Through

thisinitiative,wetakeacrucialfirststepinadvancing

freeexpressionandprivacy,atatimewhengovern-

mentinterferencewiththesebasichumanrightsison

therise....Technologymustnolongerbeusedtotram-

plebasichumanrights.44

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GoogleGrowsUp205

COPYRIGHTINFRINGEMENT

Inanopenlettertothe8,000membersoftheAuthors

Guild,PresidentRoyBlountJr.wrote:

TheGuildhadsuedGoogleinSeptember2005,after

Googlestruckdealswithmajoruniversitylibrariesto

scanandcopymillionsofbooksintheircollections.

Manyofthesebookswereolderbooksinthepublic

domain,butmillionsofotherswerestillundercopy-

rightprotection.NickTaylor,thepresidentofthe

Guild,sawGoogle’sscanningas“aplainand

brazen

violationofcopyrightlaw.

”Googlecounteredthat

digitizingthesebooksrepresenteda“fairuse”ofthe

material.Ourpositionwas:Thehellyousay.Ofsuch

disagreements,lawsuitsare

made.45

ThiswasthereactiontoGoogle’sgrandioseschemeto

scanallthebooksitcouldandmakethemavailableon

theInternet.Googledescribedtheprojectasagreatgift

tohumanity.OneGoogle

employeetoldtheNewYorker’s

JeffreyTobin,

“IthinkofGoogleBooksasourmoon

shot.”46Authorsandpublisherssawitdifferently.

THEAUTHORS’REVOLT

Indeed,theAuthorsGuildfiledsuit,asdidtheAsso-

ciationofAmericanPublishersandseveralmajorpub-

lishinghouses.Later,theEuropeanParliamentbegan

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GOOGLESPEAKS

scrutinizingthecompanyforpotentialcopyright

infringement.

ThepresidentofBibliothequeNationaledeFrance,

Jean-NoelJeanneney,called

theproject

“apieceof

Anglo-Saxonculturalimperialism.”47

Twoyearsafterthesuitswerefiled,Googleandthe

plaintiffsreachedaU.S.settlementthathasthepoten-

tialofrevolutionizingthe

publishingindustryandthe

waypeopleaccessbooks.Italsosetupapowerful

moneymakerforGoogle.

First,let’stakealookatwhatthedisputewasallabout.

GrandAmbitions

LarryPagetookapersonal

interestinassemblinga

massivelibraryofbooksonGoogle’swebsite.Hemade

avisittohisalmamater,theUniversityofMichigan,in

mid-2004,andsoonafterwardGooglequietlystarted

digitizingbooksfromUM’slibrary.Laterintheyear,the

GooglePrintforLibrariesprojectwasmadepublic.The

initiativehashadseveralnamechangesandlatelyis

calledthePrintLibraryProject.

“Callmeweird,”saidSergeyBrin,“butIthinkthere

arealotofadvantagesto

readingbooksonline.You

don’thavetolookatitatafunnyangle,andtoday’s

monitorshavebetterresolutionthanever.”48

Eventually,30libraries,includingOxford,Stanford,and

HarvarduniversitiesandtheNewYorkPublicLibrary,

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GoogleGrowsUp207

joinedwithGoogleindigitizingbooks.Googlepaysthe

libraryfortherighttocopythebookbyprovidingthelibrary

itselfwithadigitalcopy.Withinfouryears,Googlehaddig-

itizedmorethansevenmillionvolumes.

Googlepromotedthebookprojectasapublicserv-

ice,asawaytomakeknowledgemorereadilyavailable

andhelpauthorsgetexposurefortheirideasandfor

theirwriting.Unfortunately,thereseemedtobelittleor

nomechanismtobenefitthosewhocreatedthework.

Googlehadalegalrighttocopyaboutone-sixthofall

books,theonesoldenoughtohaveneverbeencopy-

rightedandthosethathaveoutlivedtheircopyright

protection.About85percentofallbooksarestillunder

copyright.Manyofthoseareoutofprint,butthey

remaintheintellectualpropertyofthosewhowrote

them.About10percentofallbooksarebothinprint

andcopyrighted.

Afterthelawsuitswerefiled,Googlescaledbackits

dreamsandbegantooperatethisway:“Whenyouclick

onasearchresultforabookfromtheLibraryProject,

you’llseebasicbibliographicinformationaboutthe

book,andinmanycases,afewsnippets—afewsen-

tencesshowingyoursearchtermincontext.Ifthebook

isoutofcopyright,you’llbeabletoviewanddownload

theentirebook.Inallcases,you’llseelinksdirecting

youtoonlinebookstoreswhereyoucanbuythebook

andlibrarieswhereyoucanborrowit.”49

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GOOGLESPEAKS

Onlycertainbooks,thosethatGooglecouldusefor

free,wouldbeavailablefordownloadingintheirentirety;

otherscouldbepurchased,bylinkingtobooksellers.

Google’sbooksearchprojectbegantolooklikeabig,

onlinebookstore.

TheSnippetDefense

Googlecontinuedthescanningandstoodupforits

righttodigitizeallbooks.Thelawsuitsarguedthat

Google’stwoclaims—thatitwasmerelyusingasnip-

petallowedunderfairuserulesandthatthedigitiza-

tioncouldspurbooksales—wereinsufficient:Evenif

Googlediduseonlysnippets,theAuthorsGuildclaimed

thatthecompanyhadnorighttoscanthecopyrighted

booksinthefirstplace.Digitalcopyingisoneofthe

usescoveredundercopyrightlaw.Google’s“snippet”

argumentraisedanotherquestionamongauthors—if

thesearchenginewouldshowonlytinyexcerpts,why

wouldGooglebothertoscanandstoretheentirebook?

ThisimpliedthatGooglehadsomethingelseinmind.

Certainlythebooksonlinerepresentedachancetosell

alotofads.

“Googleisdoingsomethingthatislikelytobevery

profitableforthem,

”saidPaulAikinoftheAuthors

Guild,“andtheyshouldpayforit.It’snotenoughtosay

thatitwillhelpthesalesofsomebooks.Ifyoumakea

movieofabook,thatmayspurtsales,butthatdoesn’t

meanyoudon’tlicensethebooks.”50

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GoogleGrowsUp209

OtherInternetserviceshaveideassimilartoGoogle’s.

Microsoftspent$2.5milliontoscan100,000books,butis

nolongersponsoringthework.Amazonalsohasscanned

hundredsofthousandsofbooksforthee-bookservice,

Kindle.Bothcompaniestookdifferentapproaches,ones

thatdealtwritersandpublishersintothegame.

WhosePropertyIsIt,Anyway?

TheattitudeofGoogle’smanagementdidnotendearit

toauthorsandpublishers.Schmidtdeclaredthatcopy-

rightisnotan“absolute”right,andthatGoogleiswill-

ingtopushtheenvelopeonthisissue.“That’sprobably

correct,”hesaid.“Ifthere’salegalcase,we’regoingto

favorthelegalonethatfavorstheusers.”51

SergeyBrinsurelywasn

’tsurprisedattheuproar

overcopyrightinfringement.Asagraduatestudent,he

workednotonlyonStanford’sbookdigitizationproject,

butalsoonaventureinvolvingautomateddetectionof

copyrightviolations.

Additionally,thecompanyfoundersclearlyunder-

stoodthevalueofintellectualoutputwhenitistheir

own.Initsprospectusforitsinitialpublicoffering,

Googledeclared,“Ourintellectualpropertyrightsare

valuable,andanyinabilitytoprotectthemcouldreduce

thevalueofourproducts,

servicesandbrand.”

AllAboutAdvertising

TheU.S.Congressconductedalegalreviewofthebook

projectandpublisheditsownreport.

“TheLibrary

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GOOGLESPEAKS

Projecthasthepotentialtobeagreatboontoscholar-

shipresearch,andthepublicingeneral.Itis,neverthe-

less,commercialinnaturebecauseGoogleanticipates

thatitwillenhanceitsservice’sutilizationbythepublic

andconcomitantlyincreaseadvertisingfees.”52

TheCongressionalreportwentontosaythatcreat-

inganindexofbooksalone,andincludingasnippetof

thetext,mostlikelywould

notbeacopyrightinfringe-

ment.However,thereportagreedthattheconflictarises

whenGooglecopiestheentirebook,whetheritmakes

thewholebookavailabletosearchersornot.Digitizing

isatransformationoftheoriginalwork,andthedigital

versioncouldverywellbelongtoGoogle,nottothe

author,publisher,ortheworldingeneral.

THEGAME-CHANGINGSETTLEMENT

Aftertwoyearsofnegotiations,Googleandtheplain-

tiffsreachedaresolutionthat

seemedtosatisfywriters

andpublishersandtoserveGoogle’sclients.Thedeal

makeselectronicbooksavailabletopubliclibrariesthat

theynevercouldhaveaffordedotherwise.Additionally,

readersandresearcherswill

havegreateraccesstorare

andout-of-printbooks.

Firstofall,the$125millionsettlementincluded$45mil-

lioninpaymentstoauthorswhosebooksGooglealready

hadscannedwithouttheirpermission.Googlewouldpay

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GoogleGrowsUp211

another$34.5milliontosetupandruntheBookRights

Registry,whichactsasaclaimandpaymentprocessing

organizationforcopyright

holders.Rightholdersinthe

Registrywillreceiveabout63percentofGoogle’sbook-

search-relatedrevenue.

Perhapsofgreaterimportance,thesettlementestab-

lishedappropriatewaystodigitizeandusecopy-

rightedbooks.UsingGoogle,readerswillbeableto

browseamassivenumberofbooksfromtheircom-

puters.Googlewillprovidethedigitalcopiestolibrar-

ies,andthosewhowanttoreadthebookfree,online,

candosoatU.S.publiclibraries.Readersalsocan

buy

thedigitizedversiononlinefromGoogleiftheywish

todoso,andauthorswouldreceiveaportionofthe

saleprice.

Finally,participationisvoluntary.Authorsandpub-

lishersofcopyrighted

materialhavetherighttowith-

holdtheirbooksfromGoogledigitizationiftheywish.

SergeyBrinhailedtheagreementasagreatleapinthe

worldofideas.“Whilethisagreementisarealwin-win

forallofus,therealvictors

areallthereaders.Thetre-

mendouswealthofknowledgethatlieswithinthebooks

oftheworldwillnowbeattheirfingertips.”53

Afederalcourtjudgeapprovedthesettlementbefore

itwentintoeffect.

RoyBlountfeltthatthenatureofpublishingischang-

ing,andtheagreementgoesalongwaytowardprotecting

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GOOGLESPEAKS

writersinthisnewenvironment.“It’shardworkwriting

abook,”saidtheAuthorsGuildpresident,“anditseven

harderworkgettingpaidforit.Asareaderanda

researcher,I’llbedelightedtostopbymylocallibraryto

browsethestacksofsomeoftheworld’sgreatestlibrar-

ies.Asanauthor,well,weappreciatepaymentwhen

peopleuseourwork.Thisdealmakesgoodsense.”54

Asmightbeexpected,noteveryoneispleasedwith

theoutcome.BrewsterKahle,founderoftheInternet

Archive,feelsthatitgivesGoogletoomuchcontrolover

thebooksoftheworld.Thecompanystillhasacorner

ondigitizedbooks.

“Onecompanyistryingtobethelibrarysystem,

”

Kahlesaid,“Thisisnotgoodforasocietythatisbuilton

freespeech.Let’shavetheWorldWideWebratherthan

theiTunesofbooks.”55

(Note:FormoreonGoogle’scopyrightwoes,gotothe

section

“YouTube”inthechapter

“Google’sFuture.

”

Viacomisseeking$1billionindamagesclaimingthat

YouTubeshowspiratedcopiesofSouthParkandThe

DailyShow.)

LAWSUITSEVERYWHERE

Google’sinnovativeservicesraisechallenginglegalquestions

thatdemandcreativeandpracticalanswers.Weworkatthe

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GoogleGrowsUp213

crossroadsofnewtechnologiesandexistinglawstoprovide

thoseanswers,helpingGooglebuildinnovativeandimportant

productsforourusersaroundtheworld.56

—RecruitingadvertisementforlawyerstoworkatGoogle

“Wejoustatthecrossroads...”mightbeamoreappropriatewordingofthisGoogleadvertisementforlawyers.

Frompatent,copyright,andtrademarkinfringementto

clickfraudtowrongfuldismissal,Googlespendsalotof

timeincourt.Whileitistrue

thatGooglemakesalarge

target,italsoistrue,asthecompanyitselfnotes,thatit

isoperatinginafieldlitteredwithuncertaintiesbegging

toberesolvedinthecourtsoflaw.Someofthelawsuits

addresskeyissuesthatcoulddefinebothGoogleand

theInternetofthefuture.

IntermsofGoogle’sviabilityasacompany,themost

importantofallthelawsuitspittedGoogleagainstitsbusi-

nesspartner,Yahoo!.ItstartedinMay1999,whenGoTo

.comfiledapatentapplicationcalled“Systemandmethod

forinfluencingapositiononasearchresultlistgenerated

byacomputernetworksearchengine.”Therequestwas

grantedinJuly2001,asU.S.patent6269361.Arelated

patentalsowasawardedinAustralia.ItseemstheGoTo

.compatentbecametheformatforGoogle’sAdWords.

Justayearlater,Overture—priortoitsacquisitionby

Yahoo!—initiatedcopyrightinfringementproceedings

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GOOGLESPEAKS

underthispatentagainstGoogle,claimingthatAdWords

technologyborrowedtoomuchfromOverture.InFeb-

ruary2002,Googlehad

introducedAdWordsSelect,

whichallowedmarketerstobidforhigherplacementin

marketsections—atacticthathadsimilaritiestoOver-

ture’ssearch-listingauctions.

FollowingYahoo!’sacquisitionofOverture,thelaw-

suitwassettled,withGoogleagreeingtoissue2.7mil-

lionsharesofcommonstocktoYahoo!inexchangefor

aperpetuallicenseforOverture.

CompanieslargeandsmallhavesuedGooglemulti-

pletimesovertrademarkinfringement.Theyinclude

Geico,AmericanBlind&Wallpaper,andAmericanAir-

lines.In2004,Googlestartedallowingadvertiserstobid

onawidevarietyofsearchtermsintheUnitedStates

andCanada,includingthetrademarksoftheircom-

petitors.InMay2008,this

policywasexpandedtothe

UnitedKingdomandtoIreland.Googleadvertisersare

restrictedfromusingothercompanies’trademarksin

theiradvertisingtextifthetrademarkhasbeenregis-

teredwithGoogle’sAdvertisingLegalSupport

team.

Unfortunately,Googleoftensettlesitssuitsoutofcourt,

withthedetailsofthesettlementkeptsecret.Whenthis

happens,importantlegalquestionsremainunanswered

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GoogleGrowsUp215

andmurkylegalwatersremainturgid.Suchwasthe

casewithAmericanAirlines.Theairlinewasoffended

thatwhenGooglesearchersenteredAA.com,itsweb-

site,theresultsincluded

websitesunrelatedto,orin

competitionwith,theairline.

AmericanAirlinesaskedGoogletostopsellingits

trademarkedtermstootheradvertisers.Google,itsaid,

was“utilizingourbrandthatwe’vebuiltformorethan

60yearsforthebenefitof

someoneelse.”57

TheAmericanAirlinessuitwassettledoutofcourt,

andthedetailswereconfidential.Itwasn’tclearwhat

thesuingcompaniesgainedandwhatGooglelearned.

However,ifthename“AmericanAirlines”orAA.com

nowisenteredintotheGooglesearchbox,onlyrefer-

encestoAmericanappear.

Googlehasgoodreasontoworkwithadvertiserstoset-

tlethissortofdispute.JohnGustafson,directorofdistribu-

tionandInternetstrategyat

theformerNorthwestAirlines

explained,“IfGooglehasaninabilitytohelpusresolve

issuesaboutabusesofourbrandthatwouldimpactour

decisiontoparticipateinfutureformsofadvertising.”58

Somelegalbattles,suchas

theonewithViacom,have

beenlongandhard-fought.Viacombroughtlegalaction

againstGoogleandYouTubefor$1billion,claimingthat

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GOOGLESPEAKS

YouTubeairsitscontentwithoutpayingforit.Comedi-

ansJonStewartandStephenColbertwerecalledaswit-

nessesinthecase,whichrevolvedaroundYouTube

clipsfrom

TheDailyShowand

TheColbertReport.

Viacomisoneofthebiggestcreatorsoftelevisionpro-

grammingintheworld.

Googlewentpostalwhenitwasorderedtoturnover

YouTubeuserdatatoViacom.Googleagain

claimed

thattheprivacyofitsuserswouldbeviolated.Google

deniedvirtuallyallofViacom

’sinfringementaccusa-

tionsandvolleyedbackoneofitsown:“Byseekingto

makecarriersandhosting

providersliableforInternet

communications,Viacom’scomplaintthreatenstheway

hundredsofmillionsofpeoplelegitimatelyexchange

information,news,entertainmentandpoliticaland

artisticexpression,”GooglesaidinanswertoViacom’s

suit.59

“Viacomisacompanybuiltfromlawsuits,lookat

theirhistory,”saidEricSchmidt.60

Finally,thetwocompaniesreachedanagreement

allowingGoogletoanonymizetheinformationbefore

lettingitgotoViacom.

AlthoughtheViacomsuitremainsunresolved,

The

DailyShowbeganputtingallitsshowsupforfreeonits

ownwebsiteandallowingviewerstosharethem.

Inamovethatistypicalof

SiliconValleycompanies,

evenasViacomandGooglewerelockedincombat,they

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GoogleGrowsUp217

announcedajointefforttotestvideoadvertising.The

jointprojectwillallowwebsiteownerstoputvideoclips

fromViacom,including

SpongeBobSquarePantsand

MTV’sLagunaBeach,ontheirpages.Theclipswould

containadvertisementsfromwhichGoogle,Viacom,

andotherproducerswillcollectrevenue.

WhentheItaliancompanyMediaset,controlledby

PrimeMinisterSilvioBerlusconi,suedYouTubeina

similarvideo-sharingdispute,aGooglespokeswoman

saidhercompanydidn’tseetheneedforthesuit.“There

isnoneedforlegalaction

...

.Weprohibitusers

fromuploadinginfringingmaterialandwecooperate

withallcopyrightholderstoidentifyandpromptly

removeinfringingcontentassoonasweareofficially

notified.”61

In2008,GoogleIndiawasorderedbytheBombayHigh

Courttorevealtheidentityofabloggerknownonlyas

“ToxicWriter,”whoisaccusedofdefamingGremach

Infrastructure,asmallconstructionoutfit.Googledid

notimmediatelyturnovertheinformationbutmaybe

forcedtoasthecasemovesforward.62

In2002,BrianReid,a52

-year-old,respectedSilicon

Valleyengineer,washiredatGoogleforasenior

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GOOGLESPEAKS

managementposition.Lessthantwoyearslater,Dr.Reid

wasfired.HesuedGoogleforagediscrimination.Reid,

anexperiencedhigh-techexecutive,claimedhewaslet

gobecausehedidn

’tfitintoGoogle

’syouth

-focused

culture.

Reidclaimedthathewassubjectedtomanyderoga-

toryage-relatedremarksatGoogle.Hewastoldhewas

slow,sluggish,andfuzzy,andthathisideaswere“obso-

lete”and“toooldtomatter.”Hewasreferredtoasthe

“oldguy”and“oldfuddy-duddy.”63

WhenaskedaboutthepossibilitythatBrinandPage

wereyouth

-obsessedandcontrolling,EricSchmidt,

himselfinhis50s,didn’tseetheissueasaproblem:“The

beautyofLarryandSergeyisthattheyarewell-known

quantities,thatifyoudon

’twanttoworkwiththem,

pleasedon’t.Slaverywasmadeillegalyearsago.”64

GOOGLEGETSANAIRPLANE

“NowondertheGoogleboys

weresofaroutoftheloop

ontheirnetneutralitylobbyingeffort,”theRatremarked

tohisminionsoverthetopofhishard-copyoftheWall

StreetJournal.“They’vebeendistractedbyother,more

importantissues—likewho

getswhatsizebedontheir

corporateplane.”65

Itseemedliketheendofaninnocentbutthrillingera

ofsimplicitywhenin2005SergeyandLarryacquired

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GoogleGrowsUp219

anairplane.Theyleased(fromthemselves)aBoeing

767-200wide-bodyjet,whichtypicallyseats200pas-

sengers,andhaditoutfittedtomeettheirneeds.It

becameapartyjetwithtwostaterooms,sittinganddin-

ingareas,andalargegalleywithseatingfor50.

Well,BillGateshasa767,sosharingonebetween

BrinandPageseemedalmostfrugal.

TheGoogleguysrequestedtypicallyinterestingmod-

ificationstotheirflyingspace,includinghammocks

that

wouldhangfromtheceiling.Asforthebeds,Eric

Schmidtreportedlyresolvedadisputeoverbedsizeby

parentaldecree:

“Sergey,youcanhavewhateverbed

youwantinyourroom;

Larry,youcanhavewhatever

kindofbedyouwantinyourbedroom.Let’smoveon.”66

Notonlydidtheoutfittingoftheplanemakeheadlines,

sodidtheberthingofit.Thecompanypays$1.3million

eachyeartoNASAtoparktheplaneatMoffettField,

which

isahopandajumpfromGoogleheadquarters.Thisisan

estimatedfourtimesthecostofparkingatnearbySan

FranciscoorSanJoseinternationalairports.

Googlenowhasseveralplanesinthefleet,including

aDornierAlphaJetfighterplane.Strictlyspeaking,the

planesdon’tbelongtoGoogle,butrathertoH211LLC,

asomewhatmysteriouscompanyreportedlycontrolled

byGoogletopbrass.GooglewillnottalkaboutH211

LLCownership,otherthantosaythatGoogleitself

holdsnoownershippositioninthecompany.

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GOOGLESPEAKS

AspartoftheMoffettFielddeal,NASAgetstoplace

instrumentsontheaircraftsandusesomeofthemfor

atmosphericresearch.Inoneinstance,theBoeing767

carriedNASAscientistsandthosefromtheSETIInstitute

toobservetheAurigidmeteorshower.NASA,

however,

getstousetheplaneonlywhenGoogledoesnot.Accord-

ingtoWebreports,NASAplannedtousethejetinthe

summerof2008toobserveandrecorddatafromthereen-

tryoftheJulesVerneATV

-1spacefreighter.However,

NASAhadtofindanotherplane(anoldDC-8asitturned

out)todocumenttheburn

-upinEarth

’satmosphere.

GoogleneededitsplanetoshuttlegueststoMontanafor

theweddingofSanFranciscoMayorGavinNewsom.

GOOGLEGETSASATELLITE

SergeyBrin,LarryPage,andtheirwivesflewtoVanden-

bergAirForceBaseonthecentralCaliforniacoastin

thelatesummerof2008toviewthelaunchofasatellite

carryingtheGooglelogointospace.Theeye-in-the-sky

waspropelledintotheatmospherebyBoeingonablaz-

ingDelta2Rocket.Fortwosuchspace-crazyindividuals

asLarryandSergey,itwasathrill.

GeoEye-1hasadealwithGoogle,givingitexclusive

commercialrightstotheimageryprovidedbythesatel-

lite.Thesearchgiantwillusethedataontheirmapping

services,GoogleMapsandGoogleEarth.TheGeoEye-1

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GoogleGrowsUp221

satelliteisalsopartoftheNextViewprogramoftheU.S.

NationalGeospatial-IntelligenceAgency.

Havingitsownspaceona

satellitegivesGoogle

greatercontrolovertheimagesitreceivesanduses.

Googlewillbeabletoprovidehigher,finerimages,

makingtheviewsofEarthandmapsmoredetailedand

easiertouse.Thesatellitewillconstantlyrefreshimages

andmakethemcurrent.Itwillorbit423milesupand

circleEarthmorethanadozentimesaday.Inoneday,

itcancollectcolorimagesofanareathesizeofNew

Mexicoorablack-and-whiteimagethesizeofTexas.

Inspiteoftheimprovements,Googlewouldliketo

seeevenbetterpicturessomeday:

Thenewsatelliteislimitedtoreleasingimagesforcom-

mercialuseatnohigherthan50centimeters(cm)reso-

lutionbygovernmentrestrictions.Mostofthehigh

resolutionsatelliteimageryisalreadyat60–100cmreso-

lution.So,thisnewsatelliteimagerywillatbestbe

slightlyhigherresolution.GoogleEarthalsohas

acquiredhigherresolutionaerialimagery(e.g.taken

fromplanes)thatisashigh

as5cmresolution(seeLas

Vegasforexample).Althoughdetailshaven

’tbeen

madeavailable,itispossiblethesatelliteiscapableof

higherresolutionimagery.Maybesomedaythegov-

ernmentwillallowhigher

resolutionimagerytobe

sold.67

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GOOGLESPEAKS

Theupgradesweren’timmediatelyseenonGoogle,

how-

ever.“ThisnewsatellitewillnotmeanGoogleEarthwill

suddenlyhavelivedata,”wroteGoogleonitswebsite.

Itwillstillbetypicallyseveralweekstoafewmonths

beforenewdataisputintoGoogleEarth.Inaddition,

thesatelliteisstilldependentonhavingtheright

weatherconditionsbeforegettingagoodphoto(no

clouds,haze,smoke,dust,rightangleofthesun)worth

puttingintoGoogleEarth.But,thefasterdataacquisi-

tionshouldspeedthingsupsome.Havingmoresatel-

liteswilldefinitelyimprovethechancesfornewdata.68

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GoodCitizen

Google

Googlehasarichlistofcorporate,volunteer,andphil-

anthropicprogramsdesignedtomaketheworldabet-

terplace.Someofthebeneficialprojectsresidewithin

orcomeoutofGooglesearch.Forexample,basedon

thenumberofsearchesforfluandcoldmedicine,

Googlehashelpedidentify

partsoftheworldexperi-

encingfluepidemics.Googlemapsstrivetohelppeople

findtheirwayaroundmanycitiesonfoot,bybicycle,or

viathemostenvironmentallyfriendlywaypossible.

Googlehasnumerousprogramsspecifically

targeted

tobettereducation,particularlyinscience.Thesearea

fewoftheactivities:

•TheSummerofCodeisathree-month,$2million

programforcomputersciencestudents.Google

223

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224GOOGLE

SPEAKS

offersstudentdevelopersstipendstowritecodefor

variousopen-source

projects.In2008,thecompany

partneredwith174open-source,freesoftware,and

technology-relatedgroupstoidentifyandfund

projects.Nearly7,100proposalswerereceived,of

which1,125wereselected.WhileGoogleusesthe

eventtolookforpromisingrecruits,thepurposeis

notrecruiting.Itistodevelopanewarrayofopen-

sourcecoding.

•InOctober2006,togetherwithLitCamandUNESCO’s

InstituteforLifelongLearning,Googlelaunched

the

LiteracyProject,offeringresourcesforteachers,lit-

eracygroups,andanyoneinterestedinpromoting

reading.

•GooglegivestheAnitaBorgScholarshiptoout-

standingwomenstudying

computerscienceinthe

UnitedStates,Canada,Australia,andEurope.

•KidsvisitGoogleregularlyforhands-onworkshops

andtolearnaboutexcitingcareersintechnology.

•GoogleisoneofthesponsorsfortheannualSally

RideScienceFestival,inwhichhundredsofgirlsin

grades5through8andtheirparentsspendtheday

atGoogle.Theyattendworkshops,participatein

scienceactivities,andlearnmoreaboutcareers

intechnology.Theyalsogetaterrificlunch.

•“IntroduceaGirltoEngineering”weektakesplace

annuallyaspartofU.S.NationalEngineersWeek.

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GoodCitizenGoogle225

EmployeesatseveralGoogle

officesbringtheir

daughterstoworkforaday.Googlealsolinksup

withschoolsandotherorganizationstoallowother

girlstotakepartintheday.

GOOGLE.ORG—THEPHILANTHROPICPART

WhiletheBlackGoogle

Network(BGN),anemployee-

drivenresourcegroup,wasoutandabouthelping

rebuildNewOrleansafterHurricaneKatrinaandthen

raisingmoneyforengineeringstudentsthroughthe

UnitedNegroCollegeFund,

otherfactionswithin

Googleweredoingtheirowngooddeeds.Atthesame

time,Google.orgseemedtoscanthewholeearthfor

worthwhileprojects.

PageandBringotGoogle.orgunderwayatthetime

theywentpublicbypushing

aplantoshareholdersto

commitresources,ashareofprofits,andemployeetime

toattackissuestheythoughttobethemosturgentchal-

lengesforsociety.

Google.orgisahybridphilanthropythroughwhich

thefounderspledgedtouse

bothprivateandnonprofit

resourcesforthegoodoftheworld.Theygobythe

1percentrule,whichmeansthat1percentofGoogle’s

equityandprofits,aswellas1percentofemployee

time,isallocatedtotheefforttomaketheworldcleaner,

safer,smarter,andmorelikelytosurvive.Theinputis

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226GOOGLE

SPEAKS

hybrid,andtheprojectsarehybridaswell,ranging

frompurenot

-for-profitinvestmentstogovernment

lobbyingcampaignstoputtingmoneyintocompanies

doingworthwhilethingswhileatthesametimeseek-

ingprofits.

GooglehiredDr.LarryBrilliantin2007tobeexecutive

directorofitsbillion-dollarphilanthropicarm.Brilliant,

whohassincemovedon,broughtexpertiseintechnol-

ogy,philanthropy,andpublichealth.SergeyandLarry

metwithBrilliantweeklyto

discussphilanthropicefforts.

Googlechosesixmaintargetinitiativesandcommit-

tedmorethan$85millioningrantsandinvestmentsto

furtherthesegoals:

1.

RE<C(RenewableEnergyLessthanCoal):Projects

tomakeotherformsofenergycheaperthancoal,

oneofthefilthiestsourcesofenergy.Googlehas

madecommitmentstospecificcompaniesworking

tomakesolar,wind,andgeothermalenergymore

widelyusedandeconomicallyfeasible.

2.

RechargeIT:Sevendifferentprojectsaimedat

makinghybrid,plug-invehiclesacommonform

oftransportation.Google.orgplannedtoinvest

$10millioninaprojectthatleadstosustainable

transportationsolutions.

3.

PredictandPrevent:Fourprojectsthataddress

globalthreatstohealthandhunger.

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GoodCitizenGoogle227

4.

InformandEmpower:Alistofinitiativespromot-

ingbettereducation,information,andgovernment

participation.

5.

FuelGrowthofSmall-andMedium-SizedEnter-

prises:Abusinessdevelopmenteffortaimedmostly

atruralandpoorpopulationsinAfrica.

6.

SpecialProjectsandLearningGrants:Acatchall

categorythatoverlapsandexpandsontheother

fivecategories.

Google.orgalsostepsoutsideitsprimaryfocusareas

toworkondiseaseeradication,disasterrelief,andother

immediateneedsastheyflareuparoundtheworld.

GOOGLEANDTHEENVIRONMENT

Look,thisisourplan.Thesunisgoingtocontinuetoshine,the

windisgoingtoblow,there’salotofheatintheearth.Wind,

solar,geothermal.Ifwewouldjuststartusingthatandbuilda

gridthatwouldgetthatpowertowherethepeopleare,which

isusuallynotwhereallthatpoweris,wecouldsolvemostof

ourenergyproblems.Anotherthingwethinkisreallyimpor-

tantisplug-inhybrids.Soyousitthereandyougo,why

plug-in

hybrids?It

’smoreeconomicallyefficientandusesfarless

power,hugely,hugelylessoil,andbytheway,they’rebuiltin

America.So,forexample,inMichigan,whichhasthishuge

unemploymentproblem,youcanbuildthebatteries.Youcan

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228GOOGLE

SPEAKS

takeallthoselaid-offautoworkersandthepeoplewho

areso

terriblyaffectedbythisdownturnandhavethemworkon

thingslikeautomobilesandalsothingslikeinsulationfor

homes,whichispaidbackforever.1

—EricSchmidt,onCNBC’sMadMoneywithJimCramer

Schmidtelaboratedonthepoint:

Wedidcalculationsthatsaidyoucouldsave$1tril-

lionover22yearsbyinvestinginsolar,windand

enhancedgeothermal,andplug-inhybrids.Thesum

ofthoseindustriesareAmericanjobsinstatesthat

havehighjoblessnessproblems.Thereislotsandlots

ofsun,windandheatintheEarththatisavailableall

thetime,whereaswearerunningoutofoil.Sothis

lowersenergyprices,increasesenergyindependence

andhelpstoaddresstheclimatechangeissue.Itseems

likeaperfectsolution[toU.S.economicproblems]if

youcanpullitoff.2

“We’veseentechnologiesthatwethinkcanreallymature

intoverycapableindustries

thatcanreallygenerate

energycheaperthancoal,andwedon’tseepeopletalk-

ingaboutthatasmuchaswe’dlike,”saidLarryPage.3

EricSchmidtadmittedthatalthoughthefinancial

andenvironmentalrewardsfordevelopingalternative

energysourcesmaybehigh,soarestartupcosts:

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GoodCitizenGoogle229

Cleantechisalittlemorelikethesemiconductorbusi-

ness.Theamountofcapitalrequiredtodoitissignifi-

cantlyhigherthanintheIT(informationtechnology)

businessesI

’vebeeninvolvedwith.Theeconomicsfor

cleantechmaynotbethesameasGoogleeconomics.

Therearehighercapitalcosts,longersupplychains,

inventoryrisks,moremanufacturing,andalsotheneed

tobuildthatexpertiseintocompanies.4

RENEWABLEENERGYLESSTHANCOAL

Google.orgfinancessomeoftheRE

<Cinitiative,the

efforttofindcheapelectricity-generatingpowersources.

“Iknowit’salittlebitgeeky,”LarryPagesaidofthe

namerenewableenergylessthancoal.5

Currentlytherearenoenergysourcesthatproduce

electricityascheaplyascoal.Conversely,fewareasdirty

ascoal.Tocompeteeconomically,analternativetechnol-

ogywouldneedtocostfrom1centto3centsperkilowatt-

hour.Tomakesolarenergymorecompetitive,Google’s

goalistocutthecostbyasmuchas50percent.

Atthe2008Web2.0Conference,LarryBrilliant

explained:“It’sdifferentthanpickandshovelinvest-

ments.It

’simportantthatwemakemoneyonthese

investmentsandforthecompaniestomakeaprofit....If

theydon’tmakemoney,nooneelsewillandwewon’tbe

abletotakeadvantageofcapitalflowsandmarketforces.”

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230GOOGLE

SPEAKS

GooglehasbeencriticizedforinvestinginRE<Cand

otherinitiativesandallocatinghundredsofmillionsof

dollarstoenergy-producing

technologiesthathaveno

relationtoitscorebusiness.However,the$45million

investmentcouldeventuallybothreduceGoogle’sown

energycostsandprovideadollarreturntothecompany.

“Ifwemeetthisgoal,andlarge

-scalerenewable

deploymentsarecheaperthancoal,theworldwillhave

theoptiontomeetasubstantialportionofelectricity

needsfromrenewablesourcesandsignificantlyreduce

carbonemissions,”Larry

said.“Weexpectthiswould

beagoodbusinessforusaswell.”6

GEOTHERMALPOWER

“Geothermal,ifitworks,isbetterthanintermittentpro-

ducersofsolarandwind,andit’salsoubiquitous,”said

Brilliantatthe2008Web2.0

Conference.

LarryPageisenthusiasticaboutthepossibilityof

thermalpower’spotential:“Ifyoudigdeepenough,you

getheat.Weneedtomakedrillingcheaper.”7Google.

orghassunkmorethan$10millionintoenhancedgeo-

thermalenergy.

ENERGYFROMTHESEA

NicolaTesladreamedofpluckingenergyfromtheair;

Googlersdreamofscoopingelectricalpowerfromthe

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GoodCitizenGoogle231

sea.Oneoftheirideasistoplacecomputercenterson

floatingbargeswithanattachedpowerplanttokeepthe

computersrunning.Butitwon’tbeeasy.Sofar,theonly

sea-relatedpower

generatorsworkwithwaveactionas

itcrashestoshore,andtherearen’tmanyofthose.In

onewave-actionproject,thewholethingsankintothe

wateroffthecoastofOregon.Inothers,wildseashave

brokenuptheequipmentor

corrodeditbeyonduse.

ENERGY-EFFICIENTGOOGLEPLEX

Googleplannedtohire20to30engineersandexperts

topursueitsenergyconservationideasusingGoogle’s

ownfacilities,whichwillbetheguineapigsfortesting

promisingtechnologies.

In2007,Googleannounceditsintentionstooperate

inacarbon-neutralenvironmentbytheendoftheyear.

InMayofthatyear,Googleswitchedon9,212solarpan-

elsatGoogleplex.UsingGoogleEarth,theyare

visible

fromthesky,linedupinneatrowsontherooftopsand

evenatopparkingshelters.Googleplexatfirsthadthe

largestsolarinstallationofanycorporatefacility,but

soonanothercompanysurpassedit.However,aGoogle

spokesmansaysthatGoogleplexitselfwasn

’tcarbon

neutralbymid-2008.Infact,theMountainViewcampus

mayneverachievethatgoal.SomeGooglefacilities

aroundtheworldmayachieveabovethegoaland

others

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232GOOGLE

SPEAKS

mayhitbelow,butthatisokayaslongasthecompany

becomesnetneutral.

“ButjustprovidingenergyforGoogleisnotreally

enoughofagoal,”Pagesaid.“Wereallywanttoprovide

energythat’scheapenoughthatitcanreplacesignifi-

cantamountsofenergythatareusedtoday.”8

Thankstoitsstatedcommitmenttoallthings

environ-

mental,GoogledrewflakforSergeyandLarry’sper-

sonalairplane.TheGovernmentAccountingOffice

(GAO)estimatesthatglobalaircraftemissionsaccount

forapproximately3.5percentofthewarminggenerated

byhumanactivities.Itisn’teasytodefendtheuseofa

largeplanewithfewpassengers.

Whenaskedabouttheinefficienciesofthejet,Brin

acknowledgeditwasaproblem,butsaidsimply,“It’s

certainlyanissueI’ve

wrestledwith.”9

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Google’sFuture

WallStreetanalystsandsomecompetitorshaveasuperficial

viewofGoogleasagiantcollegedormwithafridge

stocked

withfreeOdwallajuice.1

—StephenE.Arnold,authorandtechnologyconsultant

ArnoldwarnstheworldnottounderestimateGoogle,its

talents,itspower,andespeciallyitsresolve.IfGoogle

hasshownusanythingsofar,itisthatPage,Brin,and

Schmidtwillbesmartandaggressiveinallaspectsof

theirbusiness.

Evenso,CharlesO’Reilly,professorofmanagement

atStanfordUniversityGraduateSchoolofBusiness,

says,“Gravityaffectsallorganizationsandwillinevita-

blyaffectGoogle.”2

NobodylookstoGoogleforclearsignalsastowhereit

isheaded.Itisn’tGoogle’spracticetogiveguidance.For

thelongesttime,Googleclaimedtobeallabout

search.

233

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234

GOOGLESPEAKS

MarcAndreessen,oneofthefoundersofNetscape,said

heexpectsGoogletoexpandeverywhere,inbothon-

andofflinecomputing.“GoogleisAndyKaufman—the

latecomedian....ThewholethingwithAndyKaufman

wasyoucouldnevertellwhenhewasjoking.Google

comesoutwithastraight

faceandsays,‘We’rejustgoing

tobeasearchengine.We’renotgoingtobedoinganyof

thisotherstuff.’ButIamquitesuretheyarejoking.”3

ThearrayofproductsGoogleintroducedinthepast

fewyearsindicatesthattheywereindeedjoking.The

companywebsiteproclaims:

What’snextfromGoogle?It’shardtosay.Wedon’t

talkmuchaboutwhatliesahead,becausewebelieve

oneofourchiefcompetitiveadvantagestobesurprise.

Youcanalwaystakeapeekatsomeoftheideasthat

ourengineersarecurrentlykickingaroundbyvisiting

thematGoogleLabs.Havefun,butbesuretowear

yoursafetygoggles.4

ThequestionsaheadforGooglearethesameasthey

areforallyoungcompanies,especiallythosethatgetoff

tosuchaswiftstart.Someoftheanswers,giveninear-

liersegments,aresummarizedhere:

•Canthecompanymanagegrowth?Theanswer:

Sofar,profitsaregood,butinvestmentsinfuture

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Google’sFuture235

technologieshaveshownmixedresults.“Nameany

long-termtechnologybetyoucanthinkof,”wrote

Time,

“genome-tailoreddrugs,artificialintelli-

gence,thespaceelevator—andchancesare,there’s

ateamatGoogleplexworkingonanapplication.”5

Googlehasbeendaringinitspursuitofbright

ideasbuthashadtoabandonmanyofthemafter

investingalargeamountof

timeandmoney.

•Canitretainbrightandcompetentemployees?

AlthoughGoogledoesn’treleasefiguresonemployee

attrition,itappearsthatmanyearlyparticipants

havetakentheirmoneyandleft.YetGoogleisan

interestingplacetoworkandmanystay.

•Canthecompanydealwithintensecompetitors

whoshootforbig,successfultargets?Thiswillbe

thewarthatneverends.Googlehasastrong

franchiseinsearch

technology,butthatdoesn

’t

meanitwillhangontoitslead.BenCamm-Jones,

newseditorofWebUsermagazine,pointsoutthat

competitorswillbechasingGoogleandtryingto

dosearchbetter.“Ifthere’s

goingtobeanything,it

willbesemanticwebtechnologythatovertakes

Google—ifit’sareallycompellingpropositionand

ifsomehowwecanshakepeopleoutofthisbelief

thatGoogleistheonlywaytofindinformationon

theweb.”6

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GOOGLESPEAKS

•Willthecompanymaturewithgraceandstrength?

Theworldisfullof

unknowns,butsofarGoogle

hashadluckandbrainsonitsside.Thereareheavy

oddsthatGooglewillbeonourlipsandatour

fingertipsforalongtime.

ThegreatestdangertoGoogle’sfuturethatLarryand

Sergeyfaceis“thecultofgenius.”Theideaisthatthey

aresosmarttheycan’tmakeawrongmove.Buteven

geniusescanmakemistakes.

EricSchmidtisn’tsoworriedaboutafewmistakes:

Wetrytofocusonthefuture.

Internallywedotalkabout

strategyandinnovation,notaboutcompetitors.It’smuch

bettertolookforwardtothekindsofthingswecando.

Mediacoverageisallobsessedaboutwinnersandlosers.

Infactwhatisreally

importantabouttechnologyisyou

havetheopportunitytoredefinethegameoverandover

...andthewinnerredefinesthegame.7

SchmidthastossedoutafewcluesastohowGoogle

willdefineandredefinethefuture.Thecompanyclearly

hasengagedMicrosoftinatechnologywarbyattacking

itonitsownterritory.Googlehaspositioneditselfto

bringdownthesoftwaregiantbyenteringMicrosoft’s

businesswithcheaperandeasiertouseproducts.

SchmidthassaidthatGooglenowrealizesitcan’tdo

everythingaloneandhopestoincreaseitsparticipation

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Google’sFuture237

instrategicpartnerships,suchastheonesithashad

withDell,MySpace,andAdobe.

Additionally,Googlewillkeepasharpeyeonhowthe

economyisgoing.Withallofitsstrengths,Googlewashurt

whenthe2008recessionarrived.“Allofusarevulnera-

ble,”Schmidtwarnedinthefallof2008.“It’saracebetween

acontractioninadvertising,whichwouldaffecteverybody,

andaverypositiveshiftfromofflinetoonline.”8

Formerlyaliberalspender,Googlewillkeepacloser

eyeonexpensesbecause“it’stherightthingtodo.”9

Thecompanyhascutbackonfreefood,limitedthe

numberofcontractorsonboard,andtrimmedhiringof

permanentemployees.Google’scapitalexpendituresin

thethirdquarterof2008

totaled$452million,an18per-

centdecreasefromthepreviousyear.Asitcurbedcosts

Google’sbankaccountswelledto$14.4billionincash,

upfrom$12.7billionthreemonthsearlier.10

TherecessionmaybeGoogle’sbestfriend.Duringa

recessionmanysmaller,lesshardycompetitorsdropout

oftherace.TheindustryleaderssuchasGoogleeither

acquiretheweakercompaniesorcapturetheircustom-

ers.Highunemployment

rateswillhelpemployeereten-

tion,sincemanyworkersprefertostayputinhardtimes,

andtherearen’tmanyotherjobsoutthereforthemto

goto.Mostconvenientofall,recessionsletGoogledoa

littlehousecleaning.The

economybecomeseasyjustifi-

cationforreviewingthelonglistofexperimentalprojects

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GOOGLESPEAKS

anddeletingthosewithmarginalchancesofcontribut-

ingtothebottomline.

ProfessorPrabudevKonana,writingaboutAmerican

industryandcompanieslikeGoogleinparticular,

doesn’tclaimtoknowGoogle’sfuture.Buthe

believes

thatAmericanhigh-techcompanieswillcontinuetobe

worldleaders:

The“AmericanDream”isdeeprootedintheAmerican

psyche.Itisnotaboutowningathree-cargarageor

gas-guzzlingSUVsbutitisaboutinnovationand

opportunities.U.S.universitiesarethebestinthe

worldforinnovationandcontinuetoattractworld-

widetalent.U.S.firmscontinuetoinvestenormous

amountsofresourcesinR&

D.Alltheseformthefoun-

dationforcapitalismtothriveandarenotgoingtogo

away....ThereissomethingintheAmericanspirit—

inquisitiveness,individuality,education,risk

-taking

ability,entrepreneurship,andventurefunds—tonur-

tureideasintogreatbusinesses.11

ARTIFICIALINTELLIGENCE

Hiddenbehinditssimplewhitepages,Googlehasalreadycre-

atedwhatitsaysisoneofthe

mostsophisticatedartificial

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Google’sFuture239

intelligencesystemseverbuilt.Inafractionofasecond,itcan

evaluatemillionsofvariablesaboutitsusersand

advertisers,

correlatethemwithitspotentialdatabaseofbillionsofads

anddeliverthemessagetowhicheachuserislikelyto

respond.12

—SaulHansell,writer,NewYorkTimes

Duringaquestion-and-answersessionafteraMay2002

speechatStanfordUniversity,LarryPagesaidthat

Googlewouldfulfillitsmissiononlywhenitssearch

enginewas“AI-complete....Youguysknowwhatthat

means?That’sartificialintelligence.”13

PagetoldtheAmericanAssociationfortheAdvance-

mentofSciencethatartificialintelligencewasgettinga

badrap,butthatitwasdoableandonitsway.“Mypre-

dictionisthatwhenAIhappens,it’sgoingto[require]a

lotofcomputation.Notsomuchcleveralgorithms.Just

alotofcomputation.Ifyoulookat[ahuman’s]program-

ming,yourDNA,it’sabout600megabytes,compressed.

Soit

’ssmallerthananymodernoperatingsystem.

SmallerthanLinuxorWindows....Soyourprogram

algorithmsprobablyaren’tthatcomplicated.Wehave

somepeopleatGooglewhoaretryingtobuildartificial

intelligence,andtodoitatalargescale....Idon’tthinkit’sthatfaroff.”14

Likehumans,AIlearnsfromexperienceandlogic:

“Thesystemcanuseallthesignalsavailable,”explained

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GOOGLESPEAKS

JeffHuber,Google

’svicepresidentforengineering,

“andthesystemitselflearnsthecorrelationsbetween

them.”15

Pageexplained:

Artificialintelligencewouldbetheultimateversionof

Google.Sowehavetheultimatesearchenginethat

wouldunderstandeverythingontheWeb.Itwould

understandexactlywhatyouwanted,anditwould

giveyoutherightthing.That

’sobviouslyartificial

intelligence,tobeabletoansweranyquestion,basi-

cally,becausealmosteverythingisontheWeb,right?

We’renowhereneardoingthatnow.However,wecan

getincrementallyclosertothat,andthatisbasically

whatweworkon.Andthat’stremendouslyinteresting

fromanintellectualstandpoint.16

Whenaskedwhattheperfectsearchenginewouldbe,

SergeyBrin,founderofGoogle,said,“Itwouldbe

like

themindofGod.”17

HarvardProfessorNicholasCarrsaidthatitisclear

thatGoogle’sfoundersbelievethatsomedaytherewill

beintelligencegreaterthanwhatwethinkofashuman

intelligence.“Whetherthatcomesoutofalltheworld’s

computersnetworkedtogether,orwhetheritcomes

fromcomputersintegratedwithourbrains,Idon

’t

know,andI’mnotsurethatGoogleknows.Butthetop

executivesatGooglesaythatthecompany’sgoalisto

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Google’sFuture241

pioneerthatnewformofintelligence.Andthemore

closelythattheycanreplicateorevenexpandhowpeo-

ples’mindswork,themoremoneytheymake.”18

Carrthendeliveredawarning:

IthinkifGoogle’susers

wereawareofthatintention,

theymightbelessenthusiasticabouttheprospectthan

themathematiciansandcomputerscientistsatGoogle

seemtobe.Alotofpeopleareworriedwhatasuperior

intelligencewouldmeanforhumanbeings.I

’mnot

talkingaboutGooglerobotswalkingaroundand

pushinghumansintolines.ButGoogleseemsintenton

creatingamachinethat’sabletodoalotofourthink-

ingforus.Whenwebegintorelyonamachinefor

memoryanddecisionmaking,youhavetowonder

whathappenstoourfreewill.19

ONWARDTOWEB3.0

Withthespeedofinstantmessaging,thecomputing

worldisevolvingintoitsthirdgeneration.Web1.0was

centeredoncomputersoftwarecompaniesthatarosein

the1980sand1990s,suchasMicrosoft,Oracle,and

Lotus.Thesecompaniesdevelopedsoftwarethatallowed

foruseandenhancementofcomputersandeverything

insidethecomputer.Theseearlysoftwareprograms

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GOOGLESPEAKS

(whicharestillaroundanduseful)wereproduced,

reproduced,packaged,andmarketedmuchthewaytra-

ditionalproductsare.

Followingtheburstofthedot-combubbleinthefall

of2001,theconceptofWeb2.0emerged.Web2.0enter-

prises,mostclearlyexemplifiedbyGoogle,Napster,and

Amazon.com,existedonlyontheInternet.Theyoffered

aprimaryserviceand,inGoogle’scase,oftenearned

moneyasanancillarytothatservice.

GoogleCEOEricSchmidtspokeattheSeoulDigital

ForumandwasaskedtodefineWeb3.0byamemberof

theaudience.AfterfirstjokingthatWeb2.0isonly“a

marketingterm,”Schmidtlaunchedintoadefinitionof

Web3.0.HesaidthatwhileWeb2.0wasbasedonAjax

techniquesofbuildingapplications,Web3.0wouldbe

“applicationsthatarepiecedtogether.

”Theapplica-

tionswillberelativelysmallandperhapsspecialized,

thedatais“inthecloud,”theapplicationscanrunonall

kindsofdevices(PCormobile),andtheyareveryfast,

areeasilycustomized,andaredistributedvirally(by

socialnetworks,e-mail,andsoon).Additionally,Schmidt

notedthatWeb3.0businesseswillfindlowbarriersof

entry,yetcouldwindupwithverylargecompaniesthat

workeverywhere.

Google’sgreatchallengeistocontinuetocomeup

withproductsthatofferInternetuserswhattheywant

andneedandthatmakemoneyinthenewenvironment.

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Google’sFuture243

Thismaynotbeeasy.Google’ssocialnetworkingefforts

haveyettocontributemuchtothebottomline.

Googlehasintroducedarangeofproductsthatwork

inthecloud,includingGmailanditssuiteofproductiv-

itysoftware.OneofGoogle

’smostapparentWeb3.0

toolswasGoogleMashupEditor(GME),aWeb-based

programthatallowedindividualsandbusinessesto

developtheirownWebproducts,sites,andprocessesby

combiningvarioustypesofmedia.GMEwasinthebeta

stagebutwasplacedindoubtwhenGooglebegantrim-

mingitsproducts.

CLOUDCOMPUTING

A.J.Johnson,a12

-year-oldbaseballsluggerfromLa

Jolla,California,takescloudcomputingforgranted.He

logsontotheInterneteacheveningtodomuchofhis

homework,accessesandcompleteshisassignments

fromtheGooglewebsite,getsfeedbackfromhisteacher

onearlierwork,andsees

whatliesahead.Hecandohis

lessonsfromwhereverhehasaccesstotheInternet—

Mom’shouse,Dad’shouse,orevenGrandmother’shouse.

Hecandoitfromanywhere,andthedogcan’teatit.

Yetthereisthepossibility

thatthecloudmayeatit,or

atleastmakeitinaccessibleforacertainlengthoftime.

Aboycanalwayshope.A.J.andhisfellowstudents

aren’ttheonlyonesworking“inthecloud”thesedays.

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GOOGLESPEAKS

TheLilaG.FrederickPilotMiddleSchoolinBoston

takescloudhomeworkastepfurther.Theschoolhasno

textbooks.Studentspickuplaptopsatthestartofthe

schooldayandhandthembackattheend.Bothteachers

andstudentsmaintainblogs,staffandparentschatonline

aboutthechildren’swork,andassignmentsareturnedin

usinganelectronic“dropbox”ontheschool’swebsite.20

Whatiscloudcomputing?“Ifyoucanwalkintoany

libraryorInternetcaféandsitdownatanycomputer,

notcaringwhatoperatingsystemorbrowseryou

’re

usingandaccessaservice,thatserviceiscloudbased,”

explainedauthorGeorgeReese.21

Googlehashailedcloudcomputingasthefutureof

theInternetandanareainwhichitwillexcel.Michael

Lorenc,aGooglesalesandoperationsmanager,spoke

toagroupofstudentsaboutcomputinginthefuture.

“Webelievethatpartofthebiginnovation,thebignew

idea,willbecloudcomputing,”hesaid.“Thisisbecause

youngpeoplecomingup,thoseunder24yearsold,have

specificexpectationsregardingtheroletheInternet

playsintheirlives.”22

•Theywanttohavecommunityatthecenteroftheir

Internetexperience.

•Theywantinformationtobemobile.

•Theyexpecttobeincontrolofthecontentthey

consumeanddisseminate.23

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Google’sFuture245

Itisestimatedthatby2013atleastone-fifthofinfor-

mationtechnologyworkwillbedoneonline,perhaps

neversavedonacomputerharddriveorportablestor-

agedevice.By2019,50percentofhighschoolcourses

willbetaughtonthecloud.24

Cloudcomputingisquicklyreplacingmuchofthat

dataformerlystoredon

corporateandpersonalcom-

puters.ManyofGoogle’sapplications,suchasitscalen-

dar,spreadsheets,andpresentationsoftware,areused

athome,school,ortheoffice,butresideonGoogle’s

owncomputers.

ToEricSchmidt,thismakesalotofsense.“Thebasic

argumentis,ifyouthinkaboutit,itwouldbebetterfor

youtohaveallthedataandalltheapplicationsthatyou

useonaserversomewhere,andthenwhatevercompu-

terordeviceyou’renear

youwouldbeabletouse,”said

Schmidt.“Let’ssayyouhaveaPCoraMacathomeand

attheoffice,andyouhaveaBlackBerryandaportable

andsoforthandsoon.You’reconstantlymovingfiles

around.Whathappensifyou

dropyourThinkPadand

breakit?”

It’sjustabettermodeltohavethecomputationand

theapplicationsusewhatwecallacloud,somewhere

intheInternet.I,amongotherpeople,havebeentalk-

ingaboutthisfor15years,

wellbeforeGooglewas

founded.Itturnedouttobereallyhardtopulloff.But

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GOOGLESPEAKS

nowfinallythesebroadband

networksarefastenough

thatyoucanactuallydoit.Youjustdon

’tneedto

alwayshaveeverythingonyourlocalcomputer.25

Thecloudisacontroversialbuzzwordthatstillfright-

enssomecompanies,

especiallylargeoperationsthat

want,need,orthinktheyneedfullcontrolovertheir

data.Theyworrythatiftheprovidercompanygoesbelly

uptheirdatamaydisappearalongwiththeprovider.

Therecouldbehackers,andwhatifthesystemgoes

downatacriticaltimefortheirbusiness?Theywonder

iftheirintellectualpropertyorproprietaryinformation

issafestoredonline.Failuresdohappen.

Newer,smalleroperations,however,arefinding

cloudcomputingsocheap,easy,andportablethatthey

overlookorfindwaystoprotectagainsttheuncertain-

ties.

“Anystart

-upthatdoesn

’tusecloudcomputing

rightnowisatacompetitivedisadvantage,”claimsTien

Tzuo,founderoftheonlinebillingcompanyZuora.26

Infact,cloudcomputingisn’tasexoticorrareasitmay

sound.Tenyearsago,todoanythingonacomputeryou

neededtobuyandinstallsoftware.Notanymore;e-mail

inboxesisstoredonline,or

inthecloud,ratherthanona

personalcomputer.Servicesthatstorephotographsand

socialnetworkingsitesalsoarecloud-based.Amazonhas

longofferedpay-as-you-usebusinessservicesthroughits

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Google’sFuture247

website.Microsoftofferssoftwaretouseonline,asdoes

Apple.Bothcompaniesallowuserstobackuptheir

filesonline.

Google’scloudcomputing

powerarisesfromthe

founders’earlylackoffunds.LarryandSergeyhadto

scroungeallthePCstheycouldfindandlinkthem

together.Itworkedsowelltheystilldoitthesameway.

Thecompanycontinuestorelyonamassivelinkednet-

workofsmallcomputerstoservecustomers.Theadvan-

tageofGoogle’sserverfarmsisthattheyarescattered

aroundtheworldandprovidebackupforoneanother.If

onecomputerinthemixgoesout,itusuallydoesn’tbring

downthesystem.Employees

justswitchthedefunctone

outwithanewone.

Asfarbackas2006,expertsguessedthatGooglehadas

manyasonemillionmachinesrunningonLinux,process-

ingqueries.27AlthoughGoogledoesn’tsharethattypeof

information,thenumberofmachinesdefinitelyismuch

largernow,givingGooglethestrength,depth,andbreadth

tohandleitsusers’wishestooperateinthecloud.

Itallsoundsremarkablyconvenient,butassome

userssuspect,theplanisn’t

perfectyet.Thereareweak-

nesses,andGooglehasacknowledgeditsownsuscepti-

bilitytoerror:“Oursystemsarevulnerabletodamageor

interruptionfromearthquakes,terroristattacks,floods,

fires,powerloss,

telecommunicationsfailures,computer

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GOOGLESPEAKS

viruses,computerdenialofserviceorotherattemptsto

harmoursystem,andsimilarevents.”28

Indeed,Googlehasexperiencedserviceinterrup-

tions,suchastheoneinNovember2003,whenabout

20percentofGoogle’scustomerswerewithoutservice

forabout30minutes.In

2008,itsGmailservicewent

outforseveralhoursonseveraldays.Thisalarmed

manyusers,especiallythosewhohopedtoengagein

cloudcomputing.ButEricSchmidtshruggedthewhole

thingoff.“Thatwasjustascrewup,”heexplained.29

Hiscasualreactionmaybeannoyingtothosewho

neededtoperformcrucialworkduringthedowntime,

butseldomistheircloudinformationpermanentlylost.

Googlehasmademanycomputerusersaccustomedto

instantgratification.Likeprivacy,it’snotalwaysthere.

YOUTUBE

WhatdoInternetuserslovemorethanGoogle?Surely

theanswerisYouTube.IfyouwanttocheckoutAlaska

GovernorSarahPalin

’spressconferenceataturkey

farm,orifyouwanttohearWill.i.am’sstirring“Yeswe

can”videoorarewillingtoviewsocietyinitsfunniest

andrawestform,YouTubeisforyou.

Theleaderinonlinevideo,

YouTubeattracts100

millionpeopleeachweektoaccessitsinventoryoffive

billionvideos.YouTubeprovidesavarietyofthingsto

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Google’sFuture249

watch,evenseveralhoursadayof2008Olympiccover-

ageonitsowndedicatedchannel.

PartofthefunofYouTubeisthechanceforfame.

Peopleposthomemadevideos,someofthemcrude

andothers—suchasthehyperactivecharacterFred

and

fashionistaWilliamSledd—quiteclever.

JuanMan(nothisrealname)describedhimselfas

aimlessandfriendlesswhenhestrolledintoaSydney,

Australia,shoppingcenterholdingasignofferingfree

hugstoanyonewhocaredtohaveone.Whenavideoof

hishuggingescapadeswasuploadedonYouTube,he

becameaglobalsensation.“OneweekIwaswashing

dishesinSydney,thenextweekIwasontheOprah

WinfreyShow,”hesaid.“Ihavefriends,Ihaveafian-

cée,Ihaveapurpose.AndIhaveneverwasheddishes

since.Unlesstheyweremyown,ofcourse.”30

MuchofthecontentofYouTube,unfortunately,has

beencommandeeredfrompeopleandcompaniesthat

earntheirlivingsproducingit.Theseproducersare

lessthanhappyatfindingtheirvideoandaudiocontent

freeontheInternet.Theirdispleasurehasledtosome

well-publicizedcourtcases,suchasViacom’s$1billion

lawsuitagainstYouTubefor“massiveintentionalcopy-

rightinfringement,

”whichisstillmakingitsway

throughthelegalsystem.(Formoreonthat,gotothe

section“LawsuitsEverywhere”inthechapter“Google

GrowsUp.”)

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GOOGLESPEAKS

In2006,Googlepaid$1.76billiontoacquireYouTube,

basedonthepopularityofthesiteanditspotentialasan

advertisingmachine.Sofar,YouTubehasn’tdelivered

thegoods.By2008,itsrevenueswereonlyabout$200

million,disappointingconsideringthenumberofpeo-

pleusingthesite.OneoftheproblemsisthatYouTube

cannotlegallyselladsthatarebasedonorrunwith

copyrightedmaterial,suchasnewsclipsormaterial

fromViacom.

EricSchmidtkeepspromisingthatsalesatYouTube

willjumponceGooglefindstherightwaytoattractpeo-

pletoitsadvertisements.Schmidthassuggestedthat

theperfectcommercialapproachatYouTubeis

“the

holygrail.”31Thepersonwhofindsaneffectivewayto

capitalizeonYouTubewillhavediscoveredagreat

treasure.

THEGOOGLEPHONE

EricSchmidtwasaskedwhathesawasthenextbig

thingintechnology:“Mobile,mobile,mobile—it’sprob-

ablythemostwideopenspaceoutthererightnow.”32

Wearingin-line

rollerblades,flauntingtheirusualjun-

ior-highhaircuts,LarryandSergeysteppedoutinfront

oftheNewYorkmediainthefallof2008tointroduce

Google’slong-awaitedG1phone,ahandheldmultitasking

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Google’sFuture251

devicethatcompeteswithApple’siPhone(forwhich,not

surprisingly,Googleprovidessomesoftware).Google

itselfbroughtoutthefirstG1Androidphonebutalsois

franchisingthetechnologytoT-Mobile,SonyEricsson,

andotherphonecompaniesthatwishtomarketit.

Themobile-phonemarketishighlycompetitiveand

crowdedwithsuchweightyplayersasResearchin

MotionLtd.,Nokia,Qualcomm,andApple.

Googleisa

latecomerintothephonesoftwaremarket,butGoogle

goeswherethemoneyis.Thelargenumberofcombat-

antsonthefieldisn’taproblemforthem,sinceGoogle

hasthecashtoholdonuntilcompetitionandtheecon-

omysortthemselvesout.

Whatisanandroid?Itisarobotthatresemblesahuman,

generallybothinappearanceandbehavior.

Android

alsoisthegivennameoftheplatformonwhichGoogle

builtitsG1phone.Google’sAndroidisapowerfulpocket

computer,thefirstcomplete,open,andfreemobile

-

deviceplatform.

GoogledidnotcreateAndroid.Itacquiredthecom-

panyin2005,heralding

Google’sentryintothemobile-

softwaremarket.ItthenturnedAndroidintotheOpen

HandsetAlliance,invitingothercompaniesanddevelop-

erstofreelyaddadaptationsandapplications.

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GOOGLESPEAKS

AndroidwasbuiltatopApacheopen-sourcesoftware

because,asGooglesaysonitswebsite,

TheApachelicenseallows

manufacturersandmobile

operatorstoinnovateusingtheplatformwithoutthe

requirementtocontributethoseinnovationsbackto

theopensourcecommunity.Becausetheseinnovations

anddifferentiatedfeaturescanbekeptproprietary,

manufacturersandmobileoperatorsareprotected

fromthe

“viralinfection

”problemoftenassociated

withotherlicenses.33

Thegoalwastocomeupwithflexible,stretchablesoft-

warethatwouldmakeusingtheInternetassmoothon

amobilephoneasitisonacomputer.“We’renotbuild-

ingaphone,we’rebuildingaLinux-basedOS(operat-

ingsystem),whichislikelytobequitedifferentfrom

theiPhone,”Schmidtsaid.

34

TheGoogle/AndroidwebsiteexpandedonSchmidt’s

remark:

Butthere’smoretotheAndroidstory.Notonlydoesit

allowallapplicationsopenaccesstothephone’sfunc-

tionality;theplatformitselfwillalsobeopen.The

OpenHandsetAlliancehasannounceditsintentionto

opensourcetheentireAndroidplatformbytheendof

theyear[2008].AlongwiththeothermembersoftheAlli-

ance,wehopethatAndroidcanprovideameaningful

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Google’sFuture253

contributiontoallplayersinthemobileecosystem:the

developers,thewirelesscarriers,thehandset

manufac-

turers,etc.Everyonewillbefreetoadoptandadaptthe

technologyastheyseefit.Bydoingso,wehopethat

userswillgetbetter,morecapablephoneswithpower-

fulWebbrowsersandaccesstoarichcatalogueofinno-

vativemobileapplications.35

Theplatformsmaybefreefordevelopment,buttheG1

phoneisnot.ItispricedatjustslightlylessthanApple’s

expensiveiPhone.Googlehassetthevalueofthephone

ataround$400.

TheG1isabulkylittlebeastwithanawkwardslide-

outkeyboard,butitisagreattoyforthosewhoenjoy

playingwiththeircellphones:Sergeylikesitbecause“It’s

justveryexcitingformeasacomputergeektobeableto

haveaphonethatIcanplay

withandmodifyandinno-

vateupon,justlikeIhavewithcomputersinthepast.”36

What’sthephonelike?Inthesummerof2008,

Googlereleasedasoftwaredevelopmentkit(SKF)that

programmerscouldusetocreatemobile-phoneappli-

cationsforthecompany’snewAndroidplatform.They

thenofferedtheAndroidDeveloper’sChallengetoget

theapplicationsrollingin.

Tomakethechallengemorealluring,thecompanyprom-

isedcashprizesrangingfrom$25,000to$275,000—up

to

atotalof$1million—todeveloperswhoseapplications

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GOOGLESPEAKS

werechosenbyapanelofjudges.Morethan1,700

applicationsweredeveloped.

37Asaresult,theGoogle

phonehassomeniftyapplications,althoughsomeof

themmaybeentertainingforonly10or15minutes.For

example,GooglelikestoshowaGooglertossingthe

phoneintotheairandcatchingit,withthephone

reportingexactlyhowlongthetossandcatchtook.38

Thephonewillmeasureaperson’scarbonfootprinton

theearthandgivetipsonhowtoputlessstrainon

nature.Ownerscandownloadsoftwareallowingthem

toscanthebarcodeofaproductandcomparisonshop

ontheInternet.

Thephonecomeswiththeusualservicessuchas

camera,maps,e-mail,andinstantmessaging.Butthere

isacatch:IthastheGooglestrapattachedtoit.Users

mustsignupforaGmailaccounttousethephoneand

itsfeatures.Thereis,ofcourse,apurposeforthat.The

GmailleashallowsGoogletocreateauniqueidentifier

foreachcustomerthatcanbe

usedtotargetadstothe

phoneuser.“That’swhytheydidAndroid,”explained

RogerEntner,seniorvicepresidentofNielsenAIG,“to

helpsatisfyGoogle’sneedforadrevenues.”39

WHITESPACES

LarryPagewasecstaticwhentheFederalCommunica-

tionsCommission(FCC)votedtoopenupanunusedbroad-

casttelevisionspectrumforothertypesofbroadcasts:

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Google’sFuture255

WewillsoonhaveWi-Fionsteroids,sincethesespec-

trumsignalshavemuchlongerrangethantoday’sWi-

Fitechnologyandbroadbandaccesscanbespread

usingfewerbasestationsresultinginbettercoverage

atlowercost.AnditiswonderfulthattheFCChas

adoptedthesamesuccessfulunlicensedmodelusedfor

Wi-Fi,whichhasresultedinaprojected1billionWi-Fi

chipsbeingproducedthisyear.40

Whitespacesaretheunusedbroadcastspectrumsthat

sitbetweentelevisionchannelsandwhichlikelycanbe

usedforhigh-speedwirelesstransmission.

GooglelobbiedferventlyinWashington,D.C.and

ontheInternetforsuchachange.Googlegathered

morethan13,000signatures

supportingitspointofview

throughits“FreetheAirways”campaign.

Othermajorcompanies,includingMicrosoftand

Motorola,joinedGoogleinthecrusade.Page,however,

waspointmanonthesix-yeareffort.AGooglespokes-

personsaidthatPagehada“personalinterest”inthe

matter.Wedon’tknowforsurewhatthepersonalinter-

estwas,exceptthatPageseeswhitespacesasapoten-

tialmediumforadvertising.

Larryacknowledgedthathisinterestinexpanded

accesstowhitespaceswasn

’tentirelyaltruistic.

Googlestandsachanceofexpandingitsadvertising

revenues20to30percentthankstotheuseofwhite

spaces.

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GOOGLESPEAKS

TheFCCapprovalwasevidenceoftheinfluence

GooglehasgainedinWashington,D.C.41

Whyarethewhitespacesofsuchinteresttocompu-

terandInternetcompanies?Whitespacesareanother

freeinfrastructure,muchliketheInternet,onwhicha

businesscanbebuiltorexpanded.Powerfulcellphone

companieshadbeenpressuringthegovernmenttoauc-

tionoffwhitespacelicensestothehighestbidder,mak-

ingiteasierfortheestablished,wealthiestcompanies

tocontrolWi-Fiusage.

LarrysaidthatthedevelopmentofWi-Fiitselfshows

whatentrepreneurial

scientistscandoiftheygeta

chance.“WealluseWi-Fiallthetime.Wi-Fiwasan

accident.Itwasauselessspectrum.Itwasputinthe

licenseregime.Engineerscamealongandworkedonit

andmadeitbetterandnowwehaveexcellentWi-Fi.”

But,hesaid,Wi-Fiasitisdistributednowhaslimita-

tions,especiallyinthespeedanddistanceitwilltravel.

Whitespacesofferthepossibilityofallowinglower-cost

devicesandcanservewellinruralareaswherebroad-

bandisn

’tavailableinotherways.

“I’mreally,really

excitedaboutit.”42And,henoted,theexpansionofwhite

spacecomes“atnocosttoanyoneinthecountry.”

Still,therewereworriesaboutinterferencewithtele-

visionandwireless

microphones.Severalearly

testsofwhitespacesdevicesdidn’tturnoutwell,and

somebelievethatWi-Fiinwhitespacesjustwon’twork.

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Google’sFuture257

TheFCC

’sOffi

ceofEngineeringandTechnology

releasedareportonJuly31,2007,withresultsfromits

investigationoftwopreliminarydevices.Thereport

concludedthatthedevicesdidnotreliablysensethe

presenceoftelevisiontransmissionsorotherpreexist-

ingusers.Forthatreason,thedeviceswerenotdeemed

acceptableforuseintheircurrentstate,andnofurther

testingwasthoughttobe

necessary.

However,amonthlater,Microsoftfiledadocument

withtheFCCinwhichitsengineersdescribedameet-

ingthattheyhadwithrepresentativesfromtheOffice

ofEngineeringandTechnology.TheMicrosoft

crew

showedtheFCCresultsfromtheirtestsdonewith

identicalprototypedevicesandusingidenticaltesting

methods.Microsoftdiddetectothersignalsandthe

equipmentperformedexactlyasexpected.Inthepres-

enceofFCCengineers,theMicrosoftengineersdisas-

sembledthedevicethattheFCChadtestedandfound

thatitsscannerhadbeendamagedanddidnotwork

properly,whichexplainedtheFCC’sinabilitytoknow

whenchannelswerebeingused.

Eventuallyitwasdeterminedthatsensingtechnol-

ogywaseffectivebutwasnotfoolproofindealingwith

interference.Whencoupledwithgeolocationtechnol-

ogy,though,interferencewaslimitedtoamanageable

level.WiththeadditionoftheGPSinformation,the

whitespaceswerereleasedforuse.

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GOOGLESPEAKS

GooglehadtriedunsuccessfullytogetintotheWi-Fi

businessbefore,startingwithacitywidesystemforSan

Francisco.ThatpartnershipwithEarthlinkfellapart.

AnEarthlinkexecutivewasquotedassayingthatitwas

a“goodideabutabadbusiness.”43

Larryinsistedthatopeningthewhitespacesbenefit-

tedeveryone:ItwastherightthingfortheFCCtodo.By

makingtheInterneteasier,cheaper,andavailablein

remoteareas,itwouldputmorepeopleontherightside

oftheInternetdivide.

Asanengineer,Iwasalsoreallygratifiedtoseethat

theFCCdecidedtoputscienceoverpolitics.Foryears

thebroadcastinglobbyandothershavetriedtospread

fearandconfusionaboutthistechnology,ratherthan

allowtheFCC’sengineerstosimplydotheirwork.44

c11.indd258

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TheDominant

Powerinthe

Industry?

It’sGoogle’sworld.Wejustliveinit.1

—ChrisTolles,vicepresidentofmarketing,TopixInc.

Ithink,thereforeIGoogle.2

—DavidSmith,columnist,TheGuardian

BloggerPaulFordpublishedanarticleanticipating

thefuture:“HowGoogleBeatAmazonandeBaytothe

SemanticWeb.”Heillustratedthestorywitharough-

cutcartoonofagiantrobotstandingontheglobeand

declaring,“IamGooglebot,IcontrolEarth.”Mostread-

erssawthecartoonasaslapatGoogle,exceptforthose

whoworkedatGoogle.TheycontactedFordrequesting

259

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GOOGLESPEAKS

thattheybeallowedtoputthedoodleont-shirts.Ford

saidno,butthecartoonpoppeduponwalls,bulletin

boards,anddesksalloverGoogleoffices.3

SoundslikeGoogleisfullofitself,doesn’tit?Agener-

ousamountofhubrisisessentialtobeingaSiliconVal-

leyleader.“Thereisacertain‘wecandothis’arrogance

inSiliconValley,

”admitsMarcTarpenning,software

engineerandoneofthefoundersofTeslaMotors.“But

allentrepreneursneedabitofthatbecauseifyoureally

understoodhowdifficultthisstuffis,youwouldjust

neverdoit.”4

WhileitisobviousthatGooglerulesthekingdomof

search,eventheexpertscan’tgetahandleontheramifica-

tionsofGoogle’sdominance.BusinessWeekwrotein2007

thatthecompany’sdata-

gatheringcapabilityworriesmany

people.TechnologyhistorianGeorgeDyson,whowrote

DarwinAmongtheMachines:TheEvolutionofGlobal

Intelligence,believesGooglecouldposeanationaldefense

problemsimplybyvirtueofitshugewarehouseofdata.

“Thatmuchmoneyandpowerconcentratedinoneplace

canbedangerous,”saysDyson,whosometimesadvises

theDefenseDepartmentonpotentialthreats.Whilehe

doesn’tthinkGoogleyetrepresentssuchamenace,he

raisesamoreobviousconcern:Google’svastnetwork,

nowasubstantialpieceoftheInternetitself,is

“very

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TheDominantPowerintheIndustry?261

quicklybecomingvitalnationalsecurityinfrastructure.”

Shouldanythinghappentothecompany,hesays,

throughmarketforces,terroristattacksonserver

farms,

orsomethingelse,thatcouldcompromisenational

defense.5

EstherDyson,aventurecapitalistwhohasacloserela-

tionshipwithGoogle,wrote:

Thedangerliesinthe

concentrationofinformation—

arguablyaconcentrationofpower—thatGooglerep-

resents.Googledoesn’tmerelypointuserstoexisting

informationontheWeb;italsocollectsinformation

thatitdoesn’tshareaboutitsusers’behavior.Ifyou

canusepatternsinGooglesearchestotrackfluout-

breaksandpredictamovie’scommercialprospects,

canyoualsouseittoforecastmarketmovementsor

evenrevolutions?6

Orevenhowtomanipulateandinfluencesearchersto

thinkandactincertainways?ThethingaboutGoogle

ismostpeopledon’trealizehowmuchitknowsabout

themandhowreadilyitcantailorresponse,informa-

tion,advertisements,andsoon,toswaytheirthinking.

Theverynatureofpropagandaandinfluenceis

that

peopletendtobeunawareofhowtheyarebeing

workedover.

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GOOGLESPEAKS

Googleappearstobeanunstoppableonlinegiant,

capableofgrowingatthesamespeedthattheInternet

grows.Onacorporatelevel,Googlechallengesevery-

oneevenremotelynearit.In2008,itcameoutwiththe

GPhonetoconfrontApple’siPhone,andChrometodefy

Microsoft,andthenlaunchedKnol,apeer

-reviewed

encyclopediatoundercutWikipedia.

AndyGrove,formerCEOofIntel,describedGoogleas

acompany“onsteroids,withafingerineveryindustry.”

“Microsoft’spower,

”Groveobserved,

“wasintra

-

industry,Google’spowerisshapingwhat’shappening

tootherindustries.”7

Google’sMarissaMayer

insiststhecompany’spower

islegitimateandwell-deserved:“Ourinfluencecomes

fromtheend-usersandthetrustthatwe’vebuiltwith

them.Ifwestopputtingtheirneedsfirst,thatwillstop.”8

EstherDysonagreed,arguingthatpeopleare

alwaysfreetouseanothersearchengineiftheythink

somethingunhealthyisgoingon.Dysonconcluded,

AGooglethatisaccountabletoitsusers—searchers,

advertisers,investors,andgovernments—islikelytobe

abetteroutfitthatdoesmoregoodintoday’srelatively

openmarket.Inshort,thereisnoregulatorysystem

thatItrustmorethanthecurrentmessyworldofcon-

flictinginterests.Whatevershort

-termtemptationsit

faces—tomanipulateitssearchresults,useprivate

information,orthrowitsweightaround—Google,itis

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TheDominantPowerintheIndustry?263

clear,couldlosealotbysuccumbingtotheminaworld

whereitseverymoveiswatched.9

Dyson’sreasoningissimilartocommentsregardingthe

creditandfinancialservicesindustriespriortotheir

2008catastrophes.Inotherwords,shewassayingthe

market,competitors,and

customerskeepthesystem

honestandefficient.Therecentfailureofthatconcept

convincedmostAmericansthatwhileafree

-market

systemhasacrucialcreativityandenergy,everyindus-

tryneedssomeguidingprinciplesandoversight.

EventhoughmostcurbstoGoogle’spowerhavecome

fromthecourts,ithasbeendisciplinedbythefree

-

marketsystem.

Eachyear,thousandsofeBay

enthusiaststrektoBos-

tonfortheonlineconsignmentstore’ssellers’convention.

In2007,Googleshowedup,too,staginga“LetFreedom

Ring”partytoprotesteBay’srefusaltoletmerchantsuse

GoogleCheckout.“Wewerenotpleasedbythisnotionof

theGoogleCheckoutpartyandthemarketingaroundit,I

willtellyouthat,”saideBayCEOMegWhitman.10

CheckoutisadirectcompetitorwitheBay’spayment

system,PayPal,whicheBayacquiredin2002.PayPalis

byfartheonlinepayment

leader,withmorethan

143millionuseraccountsworldwide.Agemofan

acquisition,PayPalhasbeengrowingfasterthaneBay’s

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GOOGLESPEAKS

coreauctionandshoppingbusiness.RajivDutta,who

overseesPayPal,said,“IamconvincedPayPalisone

daygoingtobebiggerthaneBay.”11

“We’redefendingourselvesaggressivelywith

PayPal,”Whitmansaid.“Thatisoneofourcorebusi-

nesses.We’renotgoingtoletthatgoawaytosomeone

who’dkindofliketobeinthebusiness.”12

Asithappens,eBayalsoisamongGoogle’slargestadver-

tisers,spendingtensof

millionsofdollarsayearonkey-

wordadvertising.WhitmanpromptlycanceledallofitsU.S.

Googleadsformorethanaweek.Googlegotthemessage

andcanceledits“freedom”partyjustaspromptly.

GOOGLE,MICROSOFT,ANDTHEINTERNET

CIVILWAR

In2003,SergeyBrintoldtheNewYorkTimesthathe

wouldn’tknowinglychallengeMicrosoft.

“Netscape

antagonizedMicrosoft,

”hesaid.

“Wearenotputting

ourselvesinthebull’seyeasNetscapedid.”13Ayear

later,initsIPOprospectus,Googlewrote,“Wefacesig-

nificantcompetitionfromMicrosoftandYahoo!.”

Atfirst,Googleinsistedthat

ithadnofighttopickwith

Microsoft.Thatgraduallychanged.In2006,EricSchmidt

wasaskedwhoGoogle’sprimarycompetitorswere:

Well,todaywecompetewithYahoo!allthetimebe-

causetheyaretheothercompanythathasatargeted

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TheDominantPowerintheIndustry?265

advertisingnetwork.AndMicrosoftcontinuestoclaim

toenterthe[search]market,butwereallyhaven’tseen

themyet,they’rejust

gettingstarted.I’msureeventu-

allyMicrosoftwillbeacompetitor.Soit’sreallythose

threecompanies,Google,Yahoo!andMicrosoft.14

“Wejustseethehistoryof[Microsoft]behavinganti-

competitivelyand...not

playingfair,”saidBrin.“SoI

thinkwewantto...lookattheareawherethatpower

canbeabused.”15

Googlesoontooktheoffense,andabitterrivalry

escalatedbetweenthecompanies.NotonlydidGoogle

throwthegauntletdownonpracticallyeverypath

Microsoftwasfollowing,theyopenedarecruitingoffice

notfarfromMicrosoft

’sheadquartersinRedmond,

Washington,andmaderaidsonMicrosoft’stalentpool.

Butmoresignificantly,itofferedGoogleApps,freeonline

productivitysoftwaresimilartoMicrosoftOffice.Then

cameGmail,andin2008,GooglelaunchedChrome,the

freebrowserthatchallengedoneofMicrosoft

’smost

lucrativeproducts,InternetExplorer.

MicrosoftChairmanSteveBallmerbecamesoangry

overlosingkeyemployeestoGoogle,thathedeclared

war:“I’mgoingtofuckingkillGoogle.”16

WhenaskedbyCNBC’sJimCramerwhetherMicro-

softshouldworryaboutGoogle’scloudcomputing,Eric

Schmidtshotback,“IneverworryaboutMicrosoft.”17

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GOOGLESPEAKS

RupertMurdochwouldagreewithSchmidtthatGoogle

doesn’tneedtoworry.“They’vegotsomuchmoneythey

don’tknowwhattodowithit,”Murdochsaid.“Theykeep

employingpeople,testingnewideas,tryingthings,

puttingoutnewfreeapplications,relyingonadvertising

forincome.Whichmakesthemunbelievably,unbelieva-

blycompetitivewithwhatMicrosoftwouldchargeforthe

samethings.”18

WiredmagazinewrotethatthewarbetweenMicrosoft

andGoogleis“aclassicbattlebetweenyouthandexpe-

rience,orasGooglelikestobelieve,goodandevil.”19

Just20orsoyearsearlier,Microsoftwasthewhiz-kid

company—young,vigorous,

andcocky.Intime,Micro-

softlostthelusterofthenew.Thensomecorporate

actions,suchasthewayitcrushedcompetitorNetscape,

madeitthescourgeofSiliconValley.Manypeoplewere

pleasedthattherewasnowacompanythatcouldgo

nose-to-nosewithMicrosoftandholditsown.

Microsoft,ascouldbeexpected,firedbackatGoogle’s

advanceintoitsterritory.WhenthetestversionofInter-

netExplorer(IE)8cameout,itappearedtohaveafea-

turethatmightblockGoogle’stargetedadvertising.Fora

companythatreliesalmostentirelyonWebadvertising

foritsrevenues,andconsideringhowpervasivetheIE

browseris,thatcouldbeapowerfulstrike.

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TheDominantPowerintheIndustry?267

THEBATTLEOFYAHOO!

The2008fightoverYahoo!turnedtheintenserivalry

betweenthetwocompaniesintoopenwarfare.Itesca-

latedintoabattleofbiblicalproportions.Itwasawarfor

powerandcontrolinthedigitalworld—theformerDavid

versustheformerGoliath—GoogleagainstMicrosoft.

Asearlyas2006,Yahoo!

’sfinancialresultsbegan

toweaken,largelyduetocompetitionfromGoogle.

GooglewasgoingafterYahoo!’scorebusinesseswithits

Gmail,GoogleVideo,personals,andotherfeatures

withinGoogleBase.

Latethatyear,MicrosoftandYahoo!begandiscus-

sionsabouthookingup,eitherinpartnershipsorby

acquisition.Yahoo!sentMicrosoftpacking,sayingthe

timewasn’tright.ThesituationatYahoo!continuedto

deteriorate,andinJanuary2008,Ballmermadea$44

billion,$31-per-shareoffertoacquireYahoo!.

Yahoo!hadmanyattributesthatMicrosoftfound

attractive,especiallyitssearchtechnologyanditsowner-

shipofOverture.Yahoo!balkedatMicrosoft’soffer,and

inMay,Microsoftuppedtheanteto$47.5billion,or$33

pershare.Again,Yahoo!ChairmanJerryYangrefused,

sayingthatYahoo!wasworthatleast$37pershare.

Bynow,shareholders,especiallyinvestorCarlIcahn,

wereupsetwithYang.ThebattleforcontrolofYahoo!

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268

GOOGLESPEAKS

eventuallypromptedseveralpensionfundstosuethe

Yahoo!boardforrebuffingtheMicrosoftoffer.Yang’s

actionsalsopittedbillionaireinvestorIcahnagainstBill

Miller,LeggMasonchiefinvestmentofficerandCEO.

IcahninitiallydemandedthatYahoo!acceptMicrosoft’s

purchaseoffer,buteventuallyhemadepeace

withYang

and,withtwootherrepresentatives,joinedtheboardof

directors.MillersidedwithYahoo!,butleftthedoor

openforMicrosofttomakeanothertry.

InJune,Googleputadoginthefightwhenitoffered

Yahoo!asearchpartnershiptobolsteritsearnings.

ThedealwasexpectedtoyieldYahoo!$800millionin

annualadvertisingrevenues.

“There’snoquestionin

ourviewthatanindependentYahoo!isbetter,

”said

Schmidt,addingthatit“willprovidemorecompetition

insearchandotheradvertisingmarkets,inparticularin

displayadvertising.”20

“Microsofthasalonghistoryofhavingdealsthatlook

quitegoodandendup

lookingnotsogoodwhenyou

readthefineprint,”Schmidtsaid.21

The

FinancialTimesofLondondidn

’tlikethe

smellofGoogle

’soffer.Thenewspapersaidthedeal

demonstratedGoogleatitsworst,

“acombinationof

naïveinsoucianceandthinlyveiledscheming.”

TheinsouciancewasshownbySergeyBrin,who

earlierthisyearblithelytoldagroupofreporters

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TheDominantPowerintheIndustry?269

(includingthisone)thatthealliancewasallabout

helpingoutoldfriends.After

all,Yahoo!’sJerryYang

andDavidFilohadlenttheGooglefoundersahand

whentheywerejuststartingout,andanyway,their

companies’cultureswereverysimilar.

Theschemingwastheobviousulteriormotivehere,

toblockMicrosoft.Askedabouthowtheysetcorporate

strategy,Googleexecutivesalwaysdenytheyhave

suchthoughts:Everythingtheydoisforthebenefitof

thecustomers.Butthispartnershipbetrayedone

ofGoogle

’smostpowerfulpsychoses,itsparanoia

aboutMicrosoft.22

Withinmonths,itbecameclearthattheU.S.Justice

DepartmentandCanadianregulatorswouldnotapprove

theGoogle–Yahoo!deal,sinceitgavethetwocompanies

90percentofthepaidsearchmarket.Advertisersalso

wereupinarmsaboutthealliance,sayingitwouldgive

GoogleandYahoo!toomuchinfluenceoverpricingand

otheronlineadvertisingissues.

GooglepulledoutinearlyNovember.Thecompany’s

chieflegalofficerDavidDrummondexplained:“We’re

ofcoursedisappointedthatthisdealwon’tbemoving

ahead.Butwe

’renotgoingtolettheprospectofa

lengthylegalbattledistractusfromourcoremission.

Thatwouldbeliketryingtodrivedowntheroadof

innovationwiththeparkingbrakeon.”23

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GOOGLESPEAKS

Atthesametime,theeconomyandthefinancialmar-

ketswentintoaslide.Yahoo!’ssharepricefelloffacliff.

Yahoo!wentbacktoMicrosoft,hatinhand,butitwas

toolate.CEOSteveBallmerwasnolongerinterested.

“Wemadeanoffer,wemadeanotheroffer,anditwas

clearthatYahoo!didn’twanttosellthebusinesstous

andwemovedon,”Ballmersaid.“Wearenotinterested

ingoingbackandre-lookingatanacquisition.Idon’t

knowwhytheywouldbe

either,frankly.Theyturnedus

downat$33ashare.”24

TheskirmishendedwithGoogletheclearvictor.

MicrosoftwasstoppedfromacquiringYahoo!andbuild-

ingafortressinthesearchbusiness.Yahoo!wasso

shatteredthatbytheendoftheyear,itssharepricehad

declined48percent.Froma52-weekhighof$30.25,

Yahoo!endedtheyearatabout$12pershare.Froma

companyMicrosoftwaswillingtobuyformorethan

$47billion,Yahoo!endedwithmarketcapitalizationof

$17.8billion.Yahoo!announceditwouldlayoff10per-

centofitsworkforce.Oncethesecondleadingsearch

engine,Yahoo!nolongerpresentedmuchofanopposi-

tiontoGoogle.

WhileGooglecertainlyhasshakenMicrosoft

’sconfi-

denceonthesearchandadvertisingfronts,Microsoft

reignssupremeinotherareas.Awriterfor

Forbes

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TheDominantPowerintheIndustry?271

askedthisquestion:“Haveyouheardofanybigcompa-

niesthathaveditchedMicrosoftOfficeandswitched

tothefreeGoogleApps?Meneither....Googlehas

failedonthatfrontbecause

itsappssimplyaren’tthat

compelling.”25

Thewarisnotover,althoughmostexpertsfigure

Googleisinthelead.Theprizeisbig,anditwillbea

fightworthwatching.“Microsoft...continuestotryto

catcharunawayfreighttrainwithGoogle,andthereal-

ityisMicrosoft’striedorganicallysomanytimesand

reallyhaslittletoshowforit,”saidCitigroupGlobal

MarketsInc.softwareanalystBrentThill.26

“They[Google]arethe

companythatisgoingtohave

moreinfluenceandmorecontroloverthestructureof

theworldinformationindustrythananyother,

”said

DavidB.Yoffie,aprofessorattheHarvardBusiness

School.“TherightwaytothinkaboutGoogleis,they

arethenextMicrosoft.”27

GATESONGOOGLE

BillGatesadmittedthatGoogle“kickedourbutts”on

search-enginetechnology.Helaterannouncedthat

Microsoftwouldlaunchitsownsearchengine.28“Google

isstill,youknow,perfect,

”Gatessaidin2005.

“The

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GOOGLESPEAKS

bubble’sstillfloating.Youshouldbuytheirstockatany

price.Wehadaten-yearperiodlikethat.”29

Microsoftwasattheheightofitsattempttoacquire

Yahoo!whenGateswas

askedhowhefeltaboutthefact

thatGooglewasinventedattheWilliamGatesBuilding

atStanfordUniversity.Gatesbeganhisusualboxing

shufflewhenaskedaquestion,bobbingandglancing

up,down,andsideways.“

Competitionisagoodthing,”

hesaid(pause,shuffle).“Ontheotherhand,nobody’s

doingaverygoodjobofcompetingwithGoogleright

now.”30

Thenextday,toGoogle

’sdelight,Microsoftaban-

doneditsbidtopurchaseYahoo!.

WhenGatesheardthatGoogleagreedtoChinesecen-

sorshiprulessoitcouldattainaccesstothelucrative

Chinesemarket,hechortledthatperhapsthecompany

mottoshouldbecome,“Do

lessevil.”31

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Conclusion

Withinthelastsevendays,Googlehasalteredandaugmentedmy

perceptionsoftulips,mindcontrol,Japaneseplatform

shoes,vio-

lentAfricandictatorships,3-Dhigh-definitionwallpaper,spicy

chickendishes,tiledhottubs,biologicalimage

-processing

schemes,Chihuahuahygiene,andmanymorecriticaltopics.

Clearly,thankstoGoogle,IamnotthemanIwassevendaysago.1

—JohnGaeta,visualeffectssupervisor,

theMatrixtrilogy

Imaginedoingthatforsomeone?Imaginedoingthatfor

90millionpeopleaday?

LarryPageandSergeyBrincan

saytheyhavechangedtheworld.Theirstory,andthat

ofGoogle,makesoneofthemostinterestingtalesof

thiscenturyorthebest

“sofar,

”as

HomerSimpson

wouldsay.And,

admitsBrin,

“thenumber-onefactor

thathascontributedtooursuccessoverthepastseven

yearshasbeenluck.”2

273

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274

CONCLUSION

IthasbeenadramaticjourneyfromwhenPageand

BrincelebratedmilestonesbygoingtoBurgerKingfor

hamburgersandwhentheyplayedrollerhockeyinthe

parkinglotwithemployees.Thosewerethegood-old-

days.Googlehasmovedontothegoodnewdaysandto

atimewhenithasenormousresponsibilitytothepub-

lic,toemployees,andtoshareholders.

“Therearepeoplewhothinkweareplentyfullofour-

selvesrightnow,butfrominsideatleast,itdoesn’tlook

thatway,

”saidCraigSilverstein,Google

’stechnology

directoranditsfirstemployee.“Ithinkwhatkeepsus

humbleisrealizinghowmuchfurtherwehavetogo.”3

Googlealsopresentsoneofthemostperplexingpar-

adoxesofourtime.WeloveGoogle,weuseitobses-

sively,webareoursoulstoit.Theinformationmakes

ushealthier,wealthier,andwiser.Informationisthe

underpinningofpersonalandpoliticalfreedom.

Ontheotherhand,wedon’tunderstandhowGoogle

reallyworks.Itfeelsasifitknowstoomuchaboutus

andhastoomuchcontroloverus.Wearesuspiciousof

it.Thewholeprocessofsearchandsearch

-related

advertisingchallengesage-oldconceptsofpersonalpri-

vacy.Whenitcomestopropertyrights,Googleseemsto

havetheattitude,“What’smineismine;what’syoursis

mine.”

“Asacorporation,

”wrote

BusinessWeek,

“it’softena

cipher,itsintentionsandmethodsconcealedbyalgorithms

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Conclusion275

thatlookimpenetrableandimpersonal.Yetthesearch

engineandtheblockbuster

businessbuiltatopitutterly

dependsuponmillionsofpeoplesharingthroughsearches

theirmostintimatedesires,anduponthousandsofbusi-

nesseswillingtoopentheirdatastorehousestofeed

Google’svoraciousdigitalmaw.”4

Thequestionthatmostpeopleaskaboutthecom-

panyis,“Dotheyreallydonoevil?”Itistheiroft-stated

intentionnottodoevil,andverylikelytheydon’tdo

evilonpurpose.ButtheGoogleguysarehuman,and

Googleisacomplex

business.Differentpeoplehave

differentdefinitionsofevil.Initsdozenyearsofexist-

ence,Googlehaschangeditsowndefinitionofright

andwrong.Originally,thefoundersrefusedtooffer

horoscopes,financialadvice,orchat.Horoscopeswere

consideredbogus,financialadviceoftensuspect,and

chatsuperfluous.Theyoriginallyclaimednottoaccept

pornographyadvertisements,butthensuchadswould

mysteriouslyappear.Thoseidealshavelonggoneby

thewayside.

Ah,well,evilhappens.

WritinginCanada’sTheGlobeandMailnewspaper,

MattHarleyandGrantRobertsoninsistthat“Googleisa

workinprogress,andalwayswillbe.TheMountain

View,Calif.,Companyexistsinastateofperpetualbeta,

andit’sacorporatephilosophythathashelpeddrivethe

company’sseemingboundlessinnovation.”5

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276

CONCLUSION

Aslongasthecompanycontinueswithhighprofita-

bilityandoutstandinggrowth,itcangetawaywithalot

ofmisstepsandmistakes.Butoncethosetwomeasure-

mentsofsuccesslag,itwilldealwiththesameharsh

judgmentsothermature

companiesmustface.Infact,

someofthosecriticismshavebegun.

TripChowdhry,asenioranalystatGlobalEquities

Research,claimsthatbeingthekingofsearchwon’tbe

enoughtosustainGoogleoverthelongterm:“Name

meanythingthey’vebeensuccessfulinbesidessearch,”

Chowdhryasks.“Ithinktheboardandmanagementof

Googleneedsatotaloverhaul.”6

Certainlyinvestorshavesignaledtheirdoubtsabout

Google.Thestockstarted

2008offstrongwithshares

hoveringabove$690—slightlybelowtheall-timehigh

of$747.24asofNovember2007.Butas2008progressed,

thecompany’sstockplunged56percent,partlybecause

offearsthatitsrevenuegrowthwouldtank.Google’s

corebusinesshasinfactslowed,butheldupreasonably

wellduringthe2008to2009financialturmoil.

Despitethelegitimatefears,Googleremainsastable

organizationandatrustedbrandwithastrongfran-

chise.ThenumberofsearchesdoneonGooglegrows

everymonth.

Itsadrevenueshavealsobeenonafasttrack.In

2007,Googleoutstrippedeveryothermediacompany,

whetheritwastheWeb,TV,print,orradio.Google’sad

both01.indd276

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Conclusion277

revenuesoutstripped17majormediabusinesses,

includingNewsCorp,TimeWarnerCable,Viacom,

Yahoo!,Microsoft,AOL,theNewYorkTimes,andCBS

Radio.Onlineadrevenueforthese17companiesgrew

9percentthatyear,whiletotalonlinerevenuesgrew28

percent.Google’sonlineadrevenuesgrew44percent

comparedwith15percentforthecombinedonlinead

revenuesofYahoo!,Microsoft,andAOL.

7Revenue

growthdeclinedslightlyin2008andwasexpectedto

slidemorein2009.Still,Googleleadsitspackandcon-

tinuestorakeinthemoney.Thepositivesideofthe

companyfar,faroutweighsthenegative.8

EricSchmidtannouncedadefensiveplanforGoogle

butsaidhewasbullishabouttheeconomicoutlookfor

SiliconValleycompanies.

“ThisisthesixthorseventhcycleI’veseeninSilicon

Valley.Ithinkwe’rebetterpositionedthanever.”Then

heplacedtheblamesquarelyonthearea

’sterrific

weather,andLarryPageagreed:

“Idon’tthinkthere’sanywhereelseyou’dratherbe.

We’reinvestorsinTesla,forexample.It’sprettyamaz-

ingyoucandriveanelectriccarwitha220-milerange.

Thoseareproducedhere.Idon’tseethoseanywhere

elseintheworld.”9

SiliconValleyisamazing,butbeforetheendof2008,

Googleannounceditwastrimmingoverheadandlaying

both01.indd277

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278

CONCLUSION

offmuchofits10,000-strongcontractworkforce.

Even

Tesla,withitsbacklogofsalestomoviestarsandindus-

trymoguls,feltthepinch.

Admittedly,Google’ssurvivalisanythingbutguaran-

teed.Thecompanyoperatesinaquick-changing,highly

competitiveenvironment—itisinvolvedinaglobalsci-

entificandeconomicboxingmatch.Yet,ifthefounders

continuetobeascautiousandcraftyastheyhavebeen

inthepast,theywillprosper.“Googlewillkeeppushing

theenvelope,”predictedwriterJohnBattelle.“It’s

one

ofthethingsthatseemstomakethemhappy.”10

LESSONSFROMLARRYANDSERGEY

WhatcanwelearnfromtheGooglestory?

•TheAmericandreamisaliveandwell.Itmay

flicker,itmayfade,itmayseemfaraway,butitstill

beckonsusforward.Anythingispossible.

•Ahigh-qualityeducationsystemisanimportant

incubator.ThankstoMontessorischools,public

schools,greatstateuniversities,andStanford

Uni-

versity,theGoogleguyswereabletolearnwhat

theyneededtoknowtoformulateanddeveloptheir

ideas.WhentheyarrivedatStanford,theyfound

theknowledge,technology,equipment,andeven

financingtheyneeded.Bythen,theywereready

both01.indd278

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Conclusion279

forit.Stanfordisanexcellentexampleofhowa

greatuniversitycanpromotescienceandbusiness

innovation,buttherearenumerousotherexam-

ples.BothMicrosoftandFacebookwerelaunched

onHarvard’scomputers.

•Don’tfocusonthemoney;focusinsteadon

excellentresults.

•Havefun.Otherswillbe

morethanwillingtosup-

portyouinyourwork,especiallyifitisplayfuland

pleasant.

•Don’tbeevil—oratleasttryyourbesttoconduct

businessinanhonestandfairmanner.Thisone

isn’teasy,butit’sacommendableaspiration.

THETRAITSOFTHOSEWHOCHANGETHEWORLD

I’vewrittenaboutmanypeoplewhohavechangedthe

worldwiththeirideasandactions.TheseincludeBillGates

ofMicrosoft,WarrenBuffettofBerkshireHathaway,Jack

WelchofGeneralElectric,TedTurner,creatorofCNN,

OprahWinfrey,andothers.I’moftenaskedwhatcharac-

teristicstheseexceptionalpeoplehaveincommon.

•Foremost,

theytrustthemselvesandfollowtheir

ownideas.Theyhaveintuition,butmoreimportant,

theylistentothatinnervoice.

Intuitionisnota

supernaturalphenomenon.Itisacombinationof

both01.indd279

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280

CONCLUSION

yourtotalknowledge,yourexperience,your

thinkingandfeelingself,andyourpresentmindset.

Itcanbeyourautomaticpilot.

•Freshthinkingisessential.Astheworldoftechnol-

ogyevolves,newproblemsarisedaily.Oldprob-

lemsreturntohaunt.BillGatesandPaulAllendid

noteventhinkofthepastastheyworkedupthe

firstoperatingsystemforthefirstpersonalcompu-

ter.Theysimplysurveyedthechallengeanddove

fortheanswer.

•Theyarecurious.LarryPageandSergeyBrincon-

tinuallyaskquestionsandprobetheanswerstosee

whethertheywork.

•Theyengagetheirimagination.Theythinkofwhat

maybepossible.Theythinkbig.Imaginationisa

gift,butitalsocanbecultivated.

•Theyarebold,sometimesinabrashway,some-

timesinagenteelway.Theypushandpokebeyond

whatothers,eventheirownmentors,havedone.

Theydon’thesitatewhentheyknowtheyareright.

Astrongpositiveattitudecarriesthemforward,far

forward.

both01.indd280

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Timeline

1955—EricEmersonSchmidtwasbornonApril27in

Washington,D.C.

1973—LawrenceEdwardPagewasbornonMarch26

in

AnnArbor,Michigan.

SergeyMikhailovichBrinwasbornonAugust21in

Moscow,Russia.

1979—TheBrinfamily,whichincludedyoungSergey,

hisparentsandgrandmother,

arrivedintheUnited

StatesonOctober25.

1995—LarryPageandSergeyBrinmetwhenBrin

guidedatourofSanFranciscoforprospectivenew

Stanfordgraduatestudents.

1996—PageandBrin

collaboratedonPage’sBackRub

searchengine.

ThefirstversionofGoogleisreleasedinAuguston

theStanfordWeb.Theaddress:google.stanford.edu.

Alittleoverayearlater,thesearchengineleft

281

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282

TIMELINE

Stanfordserversbecauseittookuptoomuch

bandwidth.

1997—Google.comwasregisteredasadomainname.

TheyounginventorstriedtosellGooglethrough

theventurecapitalfirmofKleinerPerkinsCaufield&

Byers(KPCB).Afterunsuccessfullypitchingthe

searchenginetoalllikelybuyers,theygaveupthe

ideaofselling.

1998—Googlewasgettingmorethan10,000queries

aday.

AndyBechtolsheim,afounderofSunMicrosystems,

watchedthedemoforGoogleandimmediatelywrote

a$100,000checktogetthecompanystarted.Google

becameanofficialcorporationonSeptember7.

Afewweeksafterincorporation,CraigSilverstein

becameGoogle’sfirstemployee.

PCmagazinerecognized

Googleasthesearch

engineofchoiceandoneoftheTop100WebSitesfor

1998.

1999—Afterseveralmonthsofoperatingoutofarented

bedroomandgarage,GoogleopeneditsfirstPaloAlto

office.Laterintheyear,the

companymovedto

BayshoreDriveinnearbyMountainView.

KleinerPerkinsCaufield&Byers,inpartnership

withSequoiaCapital,providedGooglewithaddi-

tionalventurecapitalof$25million.

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Timeline283

BrinandPagefinallydroppedoutoftheStanford

graduatestudiesprogram.

OmidKordestani,thecompany’stwelfthemployee

anditsfirstnonengineer,joinedGoogleasheadof

globalsales.Kordestaniiscreditedwithcreatingthe

advertisingmodelthatledtoGoogle’searlyandcon-

tinuingfinancialglory.

CharlieAyers,whooncecookedfortheGrateful

Dead,joinedGoogleasitschef.

2000—Bymid-year,Googlesearcheshadswollento18

millionperday,andtheGoogleindexgrewtomore

than1billiondocuments,makingitthelargestsearch

engineintheworld.

Thefirsttenforeign-languageversionsofGoogle.

comwerereleased,availableinFrench,German,

Italian,Swedish,Finnish,Spanish,Portuguese,Dutch,

Norwegian,andDanish.Laterintheyear,Chinese,

Japanese,andKoreanlanguageswereadded.

Yahoo!selectedGoogleasitsdefaultsearchprovider.

GooglebegansellingAdWords,itskey-word-related

advertising.

2001—EricSchmidtjoinedGoogleasitsfirstchairman

andlaterintheyearbecamechiefexecutiveofficer.

GoogleacquiredDeja.com’sdiscussiongroupsite

UseNetandmergeditintoGoogleGroups.Thiswas

Google’sfirstacquisition.

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284

TIMELINE

“Don’tbeevil”wasfirstheardinameetingand

laterbecameGoogle’sinformalethicalmotto.

2002—LarryPageapproachedhisalmamater,the

UniversityofMichigan,aboutscanningtheirlibrary

intoGoogle’scacheofpages.

Googleannounceditwouldprovidesearchservices

toAOL.com,Compuserve,andNetscape.

InspiredbytheSeptember11terroristattacks,

GoogleNewslaunchedwith4,000newssources.

Froogleshoppingserviceswentonline.Notmuchofa

success,itlaterwasrenamedGoogleProductSearch.

2003—TheAmericanDialectSocietyvotedgooglethe

mostusefulwordof2002.

ThecompanyacquiredPyraLabs/Blogger.

AdSensewentintoserviceforadvertisers.

RegistrationopenedforGoogle

’sfirstCodeJam

programmingcompetition.

2004—GooglemovedtoitsnewMountainViewcampus,

nicknamedGoogleplex.

Gmailbecameavailableasafreee-mailservice.

GoogleannounceditwouldgopubliconApril29.

GooglewentpubliconFriday,August13,withan

initialpublicofferingpriceof$85.

GooglequietlystarteddigitizingtheUniversityof

Michigan’slibraryinJuly.Laterintheyear,“Google

PrintforLibraries

”projectwasannounced.The

both02.indd284

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Timeline285

projecthashadseveralname

changesandmostlately

iscalledthePrintLibraryProject.

ThesocialnetworkingsiteOrkutwentonline.

2005—Googleraisedanother$4.2billionthroughasec-

ondstockoffering.

ThecompanyacquiredFlickr,thepopularphoto-

sharingwebsite.

ItsfirstlobbyistofficeopenedinWashington,D.C.,

withastaffofone.

GoogleMaps,GoogleEarth,andiGooglewere

released.

Urchin(Webtrafficmetrics)waspurchased.

ThefirstSummerofCodetookplace,athree

-

month,$2millionprogramaimingtohelpcomputer

sciencestudentscontributetoopensource

development.

GoogleTalkwentonline,aWindowsapplication

enablingGmailuserstotalkonInstantMessagewith

afriendusingacomputermicrophoneandspeaker.

Theservicedoesnotrequireaphoneandisfree.

2006—TheU.S.JusticeDepartmentdemandedrecords

ofmillionsofsearch-engineusers.Googlesuccess-

fullyfendedoffthedemandincourt.

GooglewentliveinChina.

BypurchasingdMarcBroadcasting,aradioadver-

tisingcompany,Googleexpandedofflineactivity.

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TIMELINE

Google(theverb)wasaddedtotheOxfordEnglish

Dictionary.

GooglepurchasedYouTube.

Dr.LarryBrilliantwashiredtobetheexecutive

directorofGoogle.org,thecompany’sphilanthropic

arm.

2007—FortunenamedGoogleasbestcompanyto

work

forintheUnitedStates.

Gmailbecameavailabletoeveryone.Previously,it

wasavailablebyinvitationonly.

StreetViewinGoogleMapswaslaunchedinfive

U.S.cities.Laterintheyear,

Skywasinitiatedinside

GoogleEarth,showinglayersforconstellationsand

virtualtoursofthegalaxies.

HotTrendsbeganlistingthecurrent100most

activequeries,servingasaglobalsubconsciousindi-

catingwhatthemassesare

thinkingaboutatalmost

anymoment.

Viacomfiled$1billionsuitagainstGoogleforair-

ingitsprogramsonYouTubewithoutpermissionor

pay.

The$3.2billionpurchaseofDoubleClicksparked

complaintsthatGooglewasbecomingtoodominant

intheadvertisingindustry.Soonaftertheacquisition,

Googlelaidoff300DoubleClickemployees.

SergeyBrinandAnneWojcickiweremarriedinthe

Bahamas.

both02.indd286

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Timeline287

ThefirstCNN/YouTubedebatestookplace,first

betweenDemocraticpresidentialcandidatesand

laterbetweenRepublicans.

GoogleformedtheOpenHandsetAlliancetowork

onitsAndroidproject.

LarryPageandLucindaSouthworthweremarried

onNeckerIslandintheCaribbean.

TheQueenofEnglandlaunchedTheRoyalChannel

onYouTube,thefirstmonarchtoestablishavideo

presencethisway.

2008—Yahoo!agreedtousesomeGoogleadsonits

searchengine,acontroversialagreementthatfell

underintensepublicandpoliticalscrutiny.

Thecompanybidinthe700MHzspectrumwireless

communicationauction.

GoogleHealthbecameavailable.

ForthefirsttimeeverontheInternet,Googlepro-

videdreal-timestockquotes.

GooglelaunchedChrome,itsfirstWebbrowser.

AsatellitewiththeGooglelogowaslaunchedfrom

VandenbergAirForceBaseinCalifornia.Thesatel-

litewillprovidehigh-resolutionphotosforGoogle’s

mappingservice.

both02.indd287

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Glossary

AjaxAcronymforAsynchronousJavaScriptandXML.

ThisisagroupofinterrelatedWebdevelopmenttools

usedforcreatinginteractive

orrichInternetapplica-

tions.WithAjax,Webprogramscanaccessdatawithout

interferingwiththedisplayandbehaviorofthepageon

thescreen.

AlgorithmProcedureorformulaforsolvingaproblem.

Artificialintelligence(AI)Thestudyanddesignofmachinesthatcanoperatelikethehumanmind.

AtomicphraseAphrasethatcanelicitthemostspecific,

single-idearesult.

BetaSoftwarethatisreleasedtothepubliconatrial

basistoworkoutanyimperfectionsbeforetheofficial

versionisreleased.Asoftwareprogramthatremainsin

development.

BlogShortforWeblog,orastringofjournalentriespostedonaWebpage.

288

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Glossary289

BotShortfor

robot,aprogramthatautomatically

searchestheInternetlooking

forinformation.Google

usestwoversionsofsearchbots,theDeepbotand

Freshbot.Deepbottriestocrawleverylinkonthe

Webandindexasmanypagesaspossible,whereas

Freshbotseeksnewlyavailableandupdatedcontent

andwebsites.

CaptchasAnacronymforcompletelyautomatedpublic

Turingtesttotellcomputersandhumansapart.Wavy,

distortedtextusedasasecuritytesttothwartmassreg-

istrationofe-mailaccounts(forsendingspammail)and

otherWebabuses.

ChromeSoftwarelingofortoolbarsandtaskbarsthat

characterizemostcomputerprograms.Googlenamed

itsInternetbrowserChrome,aftertheseclassictools.

ClickstreamAdigitalpathshowingwhereanInternet

userhasbeen.Theclickofamouserepresentseach

steponthepath.

CloudcomputingTherearevariousdefinitionsforthis

concept.Basicallyitmeansthatdataisnotstoredor

processedonacomputer’sharddrive.Rather,theuser

logsontotheInternetforprocessingandstorage.

Folksonomy(tagging)Thepracticeandmethodofcollab-

orativelycreatingandmanagingitems,titles,names,or

thelike,toannotateandcategorizecontent.TheDewey

DecimalSystem,forexample,isafolksonomyofbooks

thatcanbefoundinalibrary.

bgloss.indd289

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290

GLOSSARY

GooglejuiceThenumberoflinksorreferencesone

websitehastoothersites.Asitewithalargenumberof

linkshasalotofGooglejuice.

GrokTounderstand.Thewordsuggestsanintimate

andexhaustiveknowledge.Inthesearchprocess,grok-

kingmeanstoanalyzethepoolofinformationtopro-

ducetheanswertoasearch.

MalwareMaliciousorharmfulsoftware,suchasviruses.

MashupAdigitalmediafilecontainingamixoftext,

audio,andanimation;itrecombinesandtweakseach

worktocreateaderivativework.Mashupmusicand

videos,forexample,areacollageofotherworks.

MetadataDataaboutdataofanynatureinanymedia.

Anitemofmetadatamaydescribeanindividualdatum,

orcontentitem,oracollectionofdatawith

multiple

contentitems.Clickstreamsareaformofmetadata.

Networkneutrality

AphilosophythatpreventsInternet

providersfrominterferingwithWebcontentbasedon

thesourceofownership.

OptimizersSearch-engineoptimizerspromisewebsite

managersthattheycangettheirsitehighplacementin

searchresultsallovertheWeb.Thisisdonebyclever

useofkeywordsandothertricksthatdistortresults.

PDAAcronymforpersonaldigitalassistant,suchasthe

multipurposeiPhoneorBlackberrymobiletelephone.

bgloss.indd290

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Glossary291

PDFCreatedbyAdobe,PortableDocumentFormatting

capturesformatting

informationfromavarietyofdesk-

toppublishingapplications,makingitpossibletosend

formatteddocumentsandallowingthemtoappearon

thecomputeruser

’smonitororprinterastheywere

meanttobe.

Petabyte(PB)Derivedfromthemathematical/scientific

prefixpeta-;aunitofinformationorcomputerstorage

equaltoonequadrillionbytes,or1,000terabytes.

PodcastDigitalmediafilesdistributedovertheInternet

forviewingonacomputerordownloadingandplay-

backonportablemediaplayers.

PokingIncomputing,thisreferstothestorageofa

valueinamemoryaddress,typicallytomodifythe

behaviorofaprogramortocheatatavideogame.

SEOSearch-engineoptimizationistheworkofimprovingthevolumeandqualityoftraffictoawebsitefrom

searchengines.Often,thesoonerasiteappearsinthe

searchresults,orthehighertherank,themoresearch-

erswillclickonthatsite.SEOalsotargetsdifferent

typesofsearch,suchasimagesearch,localsearch,and

industry-specificsearches.

ScaleAsin,“Itwasagoodidea,butitdidn’tscale.”InSiliconValley,thisusuallyreferstothequestionof

whetheraproductorserviceiseconomicallyviable.To

scalemeanstheideaorproductcansuccessfullymove

bgloss.indd291

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292

GLOSSARY

toamuchlargermodel.Itoriginateswiththeconcept

economiesofscale.Thisistheideathattheefficiencyof

productionofgoodsincreasesasthenumberofgoods

beingproducedincreases.Thus,theaveragecostof

producingagoodwilldiminishaseachadditionalgood

isproduced,sincethefixedcostsaresharedoveran

increasingnumberofgoods.

SemanticWeb

TheextensionoftheWorldWideWeb

thatenablespeopletosharecontentbeyondthebound-

ariesofapplicationsand

websites.ThesemanticWebis

asimpleorganizationthatgivesWebuserseasyand

logicalaccesstoahugeamountofinformation.

SMSShortMessageService,ortextmessagingbetweenmobilephones.SMStextmessagingissaidtobethe

mostwidelyuseddataapplicationontheplanet,with

2.4billionusers,or74%ofallmobile-phonesubscrib-

ersexchangingtextmessagesontheirphones.

Socialnetworking

Websitesthatallowpeopletoshare

ideas,information,andimagesandtoformnetworks

withfriends,family,orotherlike-mindedindividuals.

StickyAnytrickordevicethatkeepsanInternetuser

ataspecificsite.

TaggingNaminganimage,file,orsomethingonthe

Internet.Itneedsanamebeforeyoucansearchforit.

SeeFolksonomy.

TuringtestAmodelusedtoprovewhetheramachinecan

beconsideredintelligent.Intheblindtest,aquestioner

bgloss.indd292

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Glossary293

isconnectedtotwosubjects,onehumanandonea

machine.Thequestionerdoesnotknowwhichiswhich,

butasksthesamequestionsofboth.Ifthemachinecan

convincethequestionerthatitishuman,itisconsidered

intelligent.In1990,HughLoebneroffereda

$100,000

prizetothemakerofthefirstcomputertopassthetest.

TyposquatterAnopportunisticmarketerwhotakesadvan-

tageofmisspelledwords,suchasaddinganextrarto

atrademarkwordwithdoublerr’s.Thetyposquatterthen

triestosellanother,sometimescompeting,product.For

example,acarrotfarmermayownthatnameanduseit

tomarketcarrots.Atyposquattermayusecarrrottosell

acompetingbrand,tosellapatentmedicinebasedon

carrots,orthelike.

URLUniformResourceLocator,orastringofcharactersusedtorepresentandidentifyapageofinforma-

tionontheWorldWideWeb.

ViralmarketingTheviral

phenomenonreferstomarketingoradvertisingtechniquesthatusesocialnetworksto

increasebrandawarenessorsalesmuchinthewaythat

diseasesorcomputervirusesspread.Thiscanbehand

tohand,mouthtomouth,orcomputertocomputervia

theInternet.Viralmarketingnudgespeopletovoluntar-

ilypassalongamarketingmessage.Themessagemay

taketheformofvideoclips,interactivegames,e-books,

intriguingimages,oreventextmessages.

Itisclaimedthatacustomertellsanaverageof3people

aboutaproductorserviceheorshelikes,and11people

bgloss.indd293

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294

GLOSSARY

aboutaproductorservicethatheorshedidnotlike.Viral

marketingisbasedonthisnaturalhumanbehavior.

VirtualrealityAcomputersimulationofacreatedthree-

dimensionalworld,oftencompletewithaction,sound

effects,andotherenhancements.

VoIPVoice-over-Internet

protocolallowsthetransmissionofvoiceviatheInternetorotherpacket-switched

networks.VoIPissometimesusedtorefertotheactual

transmissionofvoiceratherthantheprotocolthat

makesitpossible.

WallsSocialnetworkingsite

Facebookfirstuseda

“wall”tologthescratchingsoffriends.Userssubse-

quentlyhavecreatedmoreadvancedversionsofthe

originalwall,suchastheapplicationSuperWall.

Web2.0Atermusedtodescribeanevolvinggenera-

tionofaparticipatoryWeb.Web2.0describestheprolif-

erationofinterconnectivityandsocialinteractionon

theWorldWideWeb.

WebcamAbbreviationofWebcamera,asmallcamera

thatsendsimagesthroughacomputerforaccessonthe

Internetorinstantmessaging.

WebfeedStandardizedprotocolsthatallowend-users

tomakeuseofasite’sdatainadifferentcontext.

WikisAcollectionofWebpagesthatenablesanyone

whoaccessesthemtocontributeormodifycontent,

usingasimplifiedcomputerlanguage.

bgloss.indd294

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Notes

INTRODUCTION

1.GarethMason,“HighResolutionGoogleSatelliteLaunched,

”

WorldofTech,September8,2008.

2.“GoogleRidesInternetAdWave,”AssociatedPress,October18,2007.

3.TimAlton,

“HaveYouExploredAlltheWondersofGoogle?

”

IndianapolisBusinessJournal,April2,2007,p.36.

4.MarkMalseed,“TheStoryofSergeyBrin:HowtheMoscow-Born

EntrepreneurCofoundedGoogle

—andChangedtheWaythe

WorldSearches,”Moment,February20,2007,p.38.

5.KenAuletta,“SearchandDestroy,”NewYorker,January14,2008.

6.NormanDouglas,SouthWind(London:PinoOrioli,1917).

7.“NASATakesGoogleonaJourneyintoSpace,”Googlewebsite,

www.Google.com/press,September28,2005.

8.PatrickThibodeau,“PentagonLookstoUPS,FedEx,OthersforIT

Advice,”ComputerWorld,July28,2008.

9.VanZanten,BorisVeldhuijzen,TheNextWeb.com,May12,2008.

10.DavidSmith,“TheObserver,”TheGuardian,August17,2008.

11.AmySchatz,“GoogleWillOfferServicesforBloggersatthe

Conventions,”WallStreetJournal,August19,2008.

12.AdiIgnatius,“InSearchoftheRealGoogle,”Time,February20,2006.

13.“Google,AppleScoresRiseinCustomerSatisfactionIndex,”EastBayBusinessTimes,August19,2006.

295

bnotes.indd295

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296

NOTES

THEGOOGLEGUYS

1.AdiIgnatius,“InSearchoftheRealGoogle,”Time,February20,2006.

2.MarkMalseed,“TheStoryofSergeyBrin:HowtheMoscow-Born

EntrepreneurCofoundedGoogleandChangedtheWay

theWorld

Searches,”Moment,February20,2007,p.38.

3.VirginiaScott,

Google:CorporationsThatChangedtheWorld

(Westwood,CT:GreenwoodPublishingGroup,2008).

4.Ibid.

5.MarkMalseed,“TheStoryofSergeyBrin,”p.45.

6.Ibid.

7.MichaelBrin,UniversityofMarylandprofileofSergeyBrin.

8.MarkMalseed,“TheStoryofSergeyBrin,”p.46.

9.Ibid.,p.38.

10.SergeyBrin’sblog,Too.blogspot.com.

11.SergeyBrin’spersonalblog.

12.UniversityofMarylandwebsite.

13.TheOprahWinfreyShow,November18,2008.

14.Author’sconversationwithWarrenBuffett,

December15,2008.

15.MarkMalseed,“TheStoryofSergeyBrin,”p.38.

16.AdiIgnatius,“InSearchoftheRealGoogle.”

17.“GoogleFoundersHaveGrownUp,”Reuters,May9,2008.

18.MarkMalseed,“TheStoryofSergeyBrin,”p.38.

19.Ibid.,p.38.

20.

VerneKopytoff,

“LarryPage

’sConnections,

”SanFrancisco

Chronicle,December31,2000.

21.FromTheGoogleStory

byDavidA.ViseandMarkMalseed,

copyright©2005,byDavidA.Vise.UsedbypermissionofDell

Publishing,adivisionofRandomHouse,Inc.

22.www.Montessori-ami.org.

23.Ibid.

24.Ibid.

25.www.eecs.umich.edu/eecs/alumni/Stories/Page.html.

26.Ibid.

27.BarbaraPalmer,“FollowingCreativePathsBoth‘Circuitousand

Serendipitous,’”StanfordReport,September28,2005.

bnotes.indd296

3/25/092:42:28PM

Notes297

28.FromTheGoogleStory

byDavidA.ViseandMarkMalseed,

copyright©2005,byDavidA.Vise.UsedbypermissionofDell

Publishing,adivisionofRandomHouse,Inc.

29.VernKopytoff,“LarryPage’sConnections.”

30.ConsumerElectronicsShow(CES),LasVegas,Nevada,January6,

2006.

31.JimGoldman,“Google’s‘Oogle’ofaWedding,”www.cnbc.com,November15,2007.

32.“Moon2.0—NASAProjectsCouldBeSupportedbyaCommercial

TransportandDeliveryNetwork,”www.news.com.au,October

31,

2008.

33.“GoogleFoundersHaveGrownUp.”

34.FromTheGoogleStory

byDavidA.ViseandMarkMalseed,

copyright©2005,byDavidA.Vise.Usedbypermission

ofDell

Publishing,adivisionofRandomHouse,Inc.

35.Ibid.,p.29.

36.RandyKomisarofKleiner,Perkins,Caulfield&Byers,EndeavorEntrepreneurs’Summit,StanfordUniversityEntrepreneurship

Corner.

37.“JerryYangandDavidFilo,

”StanfordUniversitySchoolof

Engineeringbiography.

38.ShivanandKanavi,“MathematicianatHeart,”BusinessIndia,May24–June6,2004.

39.FromTheGoogleStory

byDavidA.ViseandMarkMalseed,

copyright©2005,byDavidA.Vise.UsedbypermissionofDell

Publishing,adivisionofRandomHouse,Inc.

40.JohnBattelle,

TheSearch:HowGoogleandItsRivalsRewrote

theRulesofBusinessandTransformedOurCulture(NewYork:

PenguinGroup,2005),p.68.

41.Ibid.,p.90.

42.MarkMalseed,“TheStoryofSergeyBrin,”p.47.

ADULTSUPERVISION

1.EricAuchard,“GoogleExecsPledgetoBeCoworkersforYears,”

ExtremeTech.com,January31,2008.

bnotes.indd297

3/25/092:42:29PM

298

NOTES

2.TimO’Reilly,

“Web2.0Definition:TryingAgain,

”radar.oreilly

.com.archives,December10,2006.

3.AbbeyKlaassen,“TalkaboutaPowerLunch,

”AdvertisingAge,

October15,2007,p.52.

4.EricSchmidt,NASA50thAnniversaryLecture,January17,2008.

5.“GoogleFoundersHaveGrownUp,”Reuters,May9,2008.

6.FirstonCNBC:CNBCtranscript:CNBC’sJim

Cramerinterviews

EricSchmidt,GoogleChairmanandCEO,onMadMoneywithJim

Cramer,November2,2008.

7.Ibid.

8.“EricSchmidt,Google’sCEO,QualifiesasMensch,”DenverPost,LettertotheEditorfromNancyLitwack-

Strong,Opinionsection,

November9,2008.

9.EricSchmidt,NASA50thAnniversaryLecture.

INTHEBEGINNING

1.FromTheGoogleStory

byDavidA.ViseandMarkMalseed,

copyright©2005,byDavidA.Vise.UsedbypermissionofDell

Publishing,adivisionofRandomHouse,Inc.

2.GoogleCorporateInformation,www.google.com/corporate/history/

html.

3.RobertColvile,“Google

atTen:HowDidOneCompanyBecomeSuch

aPartofOurLives,SoFast?”TheTelegraph,September4,2008.

4.FromTheGoogleStory

byDavidA.ViseandMarkMalseed,

copyright©2005,byDavidA.Vise.Usedbypermission

ofDell

Publishing,adivisionofRandomHouse,Inc.

5.YuvalSa’ar,“TheIsraeliWomanbehindtheGoogleLogo,”www

.haaretz.com,February11,2008.

6.“AOLMayBecomeObjectofMicrosoft,Yahoo!,

Google’sDesires,”

CNNMoney.com,July21,2008.

7.MarissaMayer,Googleblog,September,12,2008,www.google.com.

8.“MicrosoftCEO:NoInterestinBuyingYahoo!,”AssociatedPress,Sydney,Australia,November7,2008.

9.JeffersonGraham,“TheHousethatHelpedBuildGoogle,”USA

Today,July4,2007.

bnotes.indd298

3/25/092:42:29PM

Notes299

10.“ScienceasInspiration,

”speechbyLarryPage,Entrepreneur

ThoughtLeaderSpeakers,YouTube,May1,2002.

11.http://www.wired.com/wired/archive/12.03,google_pr.html.

12.“AlumniWho’veMadeaDifference:LarryPage,”EECSAlmuni

Stories,www.eecs.umich.edu.

13.GoogleCorporateInformation,www.google.com/corporate/history/

html.

14.Ibid.

15.ShivanandKanvi,“MathematicianatHeart,”BusinessIndia,May24–

June6,2004.

16.Interviewwithauthor,December2008.

17.Larrypageinterview,AcademyofAchievement,October28,2000,

www.achievement.org.

18.JuanCarlosPerez,

“Google,Microsoft,

FacebookandMySpace

TalkPlatforms,”IDGNewsService,November7,2008.

19.AuthorinterviewswithAssistantProfessorJoelWest,SanJose

StateUniversity,December1–9,2008.

GOOGLEBYANYOTHERNAME

1.

“HowGoogleGotItsColorfulLogo,”www.wired.com/rint/techbiz/

startups/multimedia/2008/02/gallery.

2.YuvalSa’ar,“TheIsraeliWomanbehindtheGoogleLogo,”www

.haaretz.com,February11,

2008.

3.Ibid.

4.EmilyDugan,“GoogleOnceReviledComputerSuperpowersbut

DominationIsJustWhatItIsAchieving,

”TheIndependent,

September7,2008.

5.

Conservativeswebsite,

“DavidCameron:SpeechtoGoogle

ZeitgeistConference,”October12,2007.

ACOMPANYISBORN

1.SergeyBrin,

Continuum(alumnimagazine),CollegeofComputer,

Mathematical&PhysicalSciences,UniversityofMaryland,2003.

2.ShivanandKanvi,“MathematicianatHeart,”BusinessIndia,May24–June6,2004.

bnotes.indd299

3/25/092:42:29PM

300

NOTES

3.“JerryYangandDavidFilo,

”StanfordUniversitySchoolof

Engineeringbiography.

4.JeffersonGraham,“TheHousethatHelpedBuildGoogle,”USA

Today,July4,2007.

5.JohnBattelle,

TheSearch

:HowGoogleandItsRivalsRewrote

theRulesofBusinessand

TransformedOurCulture(NewYork:

PenguinGroup,2005),p.89.

6.“JohnDoerr,

”JohnBattelleinterview,

www:battellemedia.com,

November20,2007.

7.LauraRich,“HowJohn

Doerr,theOldProfessor,FinallyStruck

Google,”NewYorkTimes,May3,2004.

8.JanetDriscollMiller,“WhyCRMFails,”www.marketingpilgrim

.com,May2007.

9.Ibid.

10.“ChaosasaBusinessPlan,

”NationalPublicRadioMarket-

place,KaiRyssdalinterviewwithAdamLashinsky,September

26,2006.

11.“U.S.GoogleInc.toJointheWorld’sLayoffFad,

Leaving10,000

ContractWorkersatRisk,”TaiwanNews,November25,2008.

12.SaulHansell,“GoogleWantstoDominateMadisonAvenue,Too,”

NewYorkTimes,October30,2005.

13.JohnBatelle,

“TheWizardofAds:Google

’sOmidKordestani

ConjuredaFormulathatTookItsSalesto

$3Billion,

”Time,

October2005.

14.“AOLMayBecome

ObjectofMicrosoft,Yahoo!,Google’sDesires,”

CNNMoney.com,July21,2008.

15.KenAuletta,“SearchandDestroy,”TheNewYorker,January14,2008,p.30.

16.MattHartleyandGrantRobertson,“Google@10,”TheGlobeandMail,September6,2008.Reprinted

withpermissionofTheGlobeandMail.

17.JenniferWells,“GoogleConquerstheAdWorldOnePlain-Text

BlurbataTime,”TheGlobeandMail,November7,2008.ReprintedwithpermissionofTheGlobeandMail.

18.PeterWhoriskey,“AdvertisersSlowtoEmbrace

OnlineAdvertising,”

WashingtonPost,June29,2008.

bnotes.indd300

3/25/092:42:30PM

Notes301

19.MattHartleyandGrantRobertson,“Google@10,”TheGlobeandMail,

September6,2008.ReprintedwithpermissionofTheGlobeandMail.

20.RobertColville,“GoogleatTen:HowDidOneCompanyBecomeSuchaPartofOurLives,SoFast?”TheTelegraph,September4,2008.

21.JenniferWells,“GoogleConquerstheAdWorldOnePlain-Text

BlurbataTime,”TheGlobeandMail,November7,2008.ReprintedwithpermissionofTheGlobeandMail.

22.FromTheGoogleStory

byDavidA.ViseandMarkMalseed,

copyright©2005,byDavidA.Vise.UsedbypermissionofDell

Publishing,adivisionofRandomHouse,Inc.

23.Ibid.

24.JohnBattelle,TheSearch,p.128.

25.KenBelson,“AttendingtotheNeedsoftheTooBusy,”NewYorkTimes,September30,2008.

26.Ibid.

GOINGPUBLIC

1.MichaelMalone,“Googlemania!”Wired,December2003.

2.Ibid.

3.JasonKottke,“PlayboyInterview:GoogleGuys,”Playboy,September24,2004.

4.Letterfromthefounders,

“AnOwner

’sManualforGoogle

’s

Shareholders,”fromtheS1RegistrationStatementwiththe

SecuritiesandExchangeCommission.Availablefromseveral

sourcesincludingwww.Google.com.

5.MadMoney,CNBC,August12,2008.

6.FromTheGoogleStory

byDavidA.ViseandMarkMalseed,

copyright©2005,byDavidA.Vise.UsedbyPermissionofDell

Publishing,adivisionofRandomHouse,Inc.

7.Ibid.

8.LetterfromtheFounders,

“AnOwner

’sManualforGoogle

’s

Shareholders,”fromtheS1

RegistrationStatementwiththe

SecuritiesandExchangeCommission,andfromothersources,

includingGoogle.com.

bnotes.indd301

3/25/092:42:30PM

302

NOTES

9.Google’sS1RegistrationStatementtotheSEC,April29,2004.

10.AllanSloan,“GoingPublicMayBeGoogle

’sFirstBadMove,

”

Newsweek,May4,2004,p.

E03.

11.FromTheGoogleStory

byDavidA.ViseandMarkMalseed,

copyright©2005,byDavidA.Vise.UsedbypermissionofDell

Publishing,adivisionofRandomHouse,Inc.

12.AlyceLomax,“Googleat10:TheAwkwardPhase,”TheMotley

Fool,Fool.com,September9,2008.

13.“GoogleCo-founderSaysPenny-PinchersFuelResults,”Reuters,October17,2008.

14.Ibid.

15.JessicaE.VascellaroandScottMorrison,“GoogleGearsDownfor

TougherTimes,”WallStreetJournal,December3,2008,p.A1.

16.LindaRosencrance,“GoogleGets70%ofU.S.Searches,”ComputerWorld,July20,2008.

17.AlyceLomax,“AMore

FrugalGoogle,”TheMotleyFool,Fool.com,December2008.

THEVISION

1.GoogleAnnualReport,LettertoShareholders,2004.

2.RobertHof,“Google’sMayer:StayingInnovativeinaDownturn,”

BusinessWeek,December

14,2008.

3.http://www.wired.com/wired/archive/12.03,google_pr.html.

4.VirginiaScott,

Google:CorporationsThatChangedtheWorld

(Westwood,CT:GreenwoodPublishingGroup,2008).

5.KaiRysdalinterview,“AreYouFeelingLucky?GoogleIs,”NationalPublicRadioMarketplace,November19,2007.

6.EricSchmidtinconversationwithKenAuletta,SanFrancisco,

June11,2008.

7.KenAuletta,“SearchandDestroy,”TheNewYorker,

January14,2008,p.30.

8.“EnlightenmentMan,”TheEconomist,December4,2008.

9.KenAuletta,“SearchandDestroy,”p.30.

10.StephenShankland,

“Google’sTranslationCenter:Language

LessonsfortheGooglebot?”news.cnet.com/8301-1023.

bnotes.indd302

3/25/092:42:30PM

Notes303

11.AnickJesdanun,“AnUn-AmericanFeelAidsExpandingU.S.Web

Firms,”AssociatedPress,

NewYork,July27,2008.

12.GoogleAnnualReport,LettertoShareholders,2007.

13.AnickJesdanun,“AnUn-AmericanFeelAidsExpandingU.S.Web

Firms.”

14.GoogleAnnualReport,LettertoShareholders,2007.

15.http://www.wired.com/wired/archive/12.03,google_pr.html.

16.JohnJurgensen,

“TheFamilyGuyGoesOnLine,

”WallStreet

JournalWeekendJournal,September5,2008,p.W1.

17.GoogleAnnualReport,LettertoShareholders,2005.

18.AdiIgnatius,“MeettheGoogleGuys,”Time,February20,2006.

19.www.Google.com/corporate.

20.Frequentlyquoted.

21.

JasonKottke,

“PlayboyInterview:GoogleGuys,

”Playboy,

September24,2004.

22.“Web2.0Summit:EntrepreneurialSpiritTooStrongforGoogle

Alumni:TheMoneyWas

Great

...

LarryandSergeyWere

Focused...ButaPanelofEx-GooglersRevealedWhyTheyHave

NowGoneOfftoBuildTheirOwnWeb2.0Fortunes,”Information

Week,October20,2007.

23.Ibid.

24.JasonKottke,“PlayboyInterview:GoogleGuys.”

25.AdamL.Penenberg,

“IsGoogleEvil?ItKnowsMorethanthe

NationalAgencyEverWill.AndDon’tAssumefora

MinutethatIt

CanKeepaSecret,

”MotherJones,November

–December2006,

p.67.

26.Ibid.

27.Mysearchgurublog.com,November25,2008.

28.http://xooglers.blogspot.com,postedFebruary19,2007.

29.JohnBattelle,TheSearch,p.139.

30.EricSchmidtinconversationwithKenAuletta,SanFrancisco,

June11,2008.

31.

SethFinkelstein,

“JewWatch,Google,andSearchEngine

Optimization,”sethf.com/anticensorware/google/jew-watch.php.

32.www.google.com/explanation.html.

33.

http://sethf.com/anticensorware/google/jew-watch.php.

bnotes.indd303

3/25/092:42:31PM

304

NOTES

34.http:/google-watch.org.

35.EricSchmidtin

conversationwithKenAuletta,SanFrancisco,

June11,2008.

GOOGLECULTURE

1.Frequentlyquoted.

2.StephanieOlsen,“Newsmakers:Google

’sManBehindthe

Curtain,”CNETNews.com,May10,2004.

3.AdamLashinsky,“Back2BackChamps,

”Fortune,February4,

2008,p.70.

4.LetterfromtheFounders,

“AnOwner

’sManualforGoogle

’s

Shareholders,”fromtheS1RegistrationStatementwiththe

SecuritiesandExchangeCommission,andfromothersources,

includingGoogle.com,2004.

5.EricSchmidtinconversationwithKenAuletta,SanFrancisco,

June11,2008.

6.“Web2.0Summit:EntrepreneurialSpiritTooStrongforGoogle

Alumni:TheMoneyWasGreat

...

LarryandSergeyWere

Focused...ButaPanelofEx-GooglersRevealedWhyTheyHave

NowGoneOfftoBuildTheirOwnWeb2.0Fortunes,

”

InformationWeek,October20,2007.

7.KenAuletta,“SearchandDestroy,”TheNewYorker,January14,2008,p.30.

8.Ibid.

9.JeremyCaplan,“Google’sChiefLooksAhead,”ManagingGrowth,October2,2006.

10.Ibid.

11.“Web2.0Summit:

EntrepreneurialSpiritTooStrongforGoogle

Alumni.”

12.Fromaninterviewbytheauthor,summer,2008,withemployee

whowishedtoremainanonymous.

13.ChrisAnderson,TheLongTail(NewYork:

Hyperion,2006).

14.LetterfromtheFounders,

“AnOwner

’sManualforGoogle

’s

Shareholders.”

15.ElizabethMontalbano,“GrowingPainsforGoogle,”

ComputerWorld,October20,2008.

bnotes.indd304

3/25/092:42:31PM

Notes305

16.JessicaE.VascellaroandScottMorrison,“GoogleGearsDownfor

TougherTimes,”WallStreet

Journal,December3,2008.

17.SewellChan,“GoogleTransitExpandstoNewYork,

”http://

cityroom.blogs.nytimes.com/2008/09/23.

18.MattHartleyandGrantRobertson,“Google@10,”TheGlobeandMail,

September6,2008.

19.TriciaMcDermott,“DefiningGoogle,”CBSNews,January2,2005.

20.AdamLashinsky,“Back2BackChamps,”p.70.

21.Ibid.;VerneKopytoff,“LarryPage’sConnections,”SanFranciscoChronicle,December31,2000.

22.AdamLashinsky,“Back2BackChamps,”p.70.

23.http://features.blogs.fortune.cnn.com/2008/01/21/100-best-companies-

to-work-for/.

24.Ibid.

25.DanielDeBolt,“CityofGoogle:InComingYears,InternetGiant

CouldTripleItsAlreadyHugeAmountofOfficeSpace,”Mountain

ViewVoice,July20,2007.

26.MarkMalseed,“TheStoryofSergeyBrin:HowtheMoscow-Born

EntrepreneurCofoundedGoogleandChangedtheWaytheWorld

Searches,”MomentMagazine,February2007,p.38.

27.VasanthSridharan,

“Google’sGinormousFreeFoodBudget:

$7,530perGoogler,

$72MillionaYear,

”SiliconAlleyInsiders,

http://www.alleyinsider.com,April23,2008.

28.DanFarber,“KaiFuLee:INeedtoFollowMyHeart,”www.blogs

.zdnet.com,August9,2005.

29.LetterfromtheFounders,

“AnOwner

’sManualforGoogle

’s

Shareholders.”

30.JohnBatelle,

“TheWizardofAds:Google

’sOmidKordestani

ConjuredaFormulathatTookItsSalesto

$3Billion,

”Time,

October2005.

31.WendyMcLellan,

“GoogleTargetingTalentwithInnovative,

CreativeQualities,”CanwestNewsService,July28,2008.

32.Ibid.

33.GoogleLabsAptitudeTest,LinuxJournal,September1,2004.

34.LetterfromtheFounders,InitialPublicOfferingRegistration

StatementS1,2004.

35.QuentinHardy,“ClosetotheVest,”Forbes,July2,2007.

bnotes.indd305

3/25/092:42:31PM

306

NOTES

36.DanFost,“KeepingItAllintheGoogleFamily,”NewYorkTimes,November13,2008.

37.StephenE.Arnold,“The

SummerofTransparency,”KMWorld,August31,2008,www.kmworld.com.

38.LettertoShareholders,GoogleS1PublicOfferingRegistration,2004.

39.DanielDeBolt,“CityofGoogle.”

40.“Google’sWallofSilence,”Opinionpage,MountainViewVoice,July

27,2007.

41.Ibid.

42.Ibid.

43.StephenE.Arnold,“TheSummerofTransparency.”

GOOGLEGROWSUP

1.KevinKelleher,

“Who’sAfraidofGoogle?

Everyone,

”Wired,

November30,2005.

2.“GoogleFoundersHaveGrownUp,”Reuters,May9,2008.

3.AuthorinterviewswithAssistantProfessorJoelWest,SanJose

StateUniversity,December1–9,2008.

4.FromTheGoogleStory

byDavidA.ViseandMarkMalseed,

copyright©2005,byDavidA.Vise.UsedbypermissionofDell

Publishing,adivisionofRandomHouse,Inc.

5.ChrisKraeuterandRachelRosmarin,“WhyGoogleWon’tGive

In,”Forbes,January24,2006.

6.Ibid.

7.Ibid.

8.JamesKirkupandNicoleMartin,“YouTubeAttackedbyMPsOver

SexandViolenceFootage,”TheTelegraph,July3,2008.

9.Googlecorporatewebsite,www.google.com.

10.DeclanMcCullagh,“ReportCriticizesGoogle’sPornFilters,”CNetNews,News.cnet.com,April10,2003.

11.MattHartleyandGrantRobertson,“Google@10,”

TheGlobeandMail,September6,2008.ReprintedwithpermissionofTheGlobeandMail.

12.AbbeyKlaassen,“TalkaboutaPowerLunch,

”AdvertisingAge,

October15,2007,p.52.

bnotes.indd306

3/25/092:42:31PM

Notes307

13.“GoogleUnderFirefor

‘Breathtaking’Hypocrisy,NewReport

ShowsJustHowMuchPersonalInformationIsAvailablethrough

GoogleStreetView,”

Marketwatch,July31,2008.

14.Ibid.

15.DrakeBennett,“StoppingGoogle,”BostonGlobe,June30,2008,www.Boston.com.

16.MichaelDinan,“PrivacyIssues,GovernmentProbeStirHard

FeelingsbetweenAT

&T,Google,

”TMCnet,

www.tmcnet.com,

August15,2008.

17.JuliaBonstein,MarcelRosenbach,andHilmarSchmundt,

“Data

MiningYoutoDeath,

”www.spiegel.de/international/germany,

October30,2008.©2008,SpiegelOnline.Reprintedbypermission.

18.Ibid.

19.Ibid.

20.JohnLetzing,“WebFirmsTreadCarefullyinBehaviorTracking,”

MarketWatch,September10,2008.

21.LetttertoShareholders,Google2005AnnualReport.

22.EmilieDugan,“GoogleOnceReviledComputerSuperpowersBut

DominationIsJustWhatItIsAchieving,

”TheIndependent,

September7,2008.

23.ZushaElinson,“BoringCoupleSuesGoogleforStreetView,”TheRecorder,April9,2008.

24.“RestatementofTorts,”AmericanLawInstitutelegal

guideline;CadeMetz,“Google:EvenintheDesert,PrivacyDoesNotExist,”

www.theregister.co.uk,July31,2008.

25.JuliaBonstein,MarcelRosenbach,andHilmarSchmundt,“Data

MiningYoutoDeath.”

26.YokoKubota,“Japanese

GroupAsksGoogletoStopMapService,”

Reuters,December19,2008.

27.ElinorMills,“GoogleBalancesPrivacy,Reach,”CNETNews,July14,2005.

28.EricSchmidtinconversationwithKenAuletta,SanFrancisco,

June11,2008.

29.DrakeBennett,“StoppingGoogle,”BostonGlobe,June30,2008,www.Boston.com.

30.Ibid.

bnotes.indd307

3/25/092:42:32PM

308

NOTES

31.EllenNakashima,“WebFirmsAcknowledgeTrackingBehavior

withoutConsent,”LosAngelesTimes,August12,2008.

32.ChrisWilliams,

“BerlusconiPlanstoUseG8Presidencyto

‘RegulatetheInternet,’”

TheRegister(UK),December3,2008.

33.DavidSmith,“TheObserver,”TheGuardian,August17,2008.

34.AdamL.Penenberg,“IsGoogleEvil?ItKnowsMorethantheNationalAgencyEverWill.AndDon’tAssumeforaMinutethatItCanKeepa

Secret,”MotherJones,November–December2006,p.67.

35.KenAuletta,“SearchandDestroy,”TheNewYorker,January14,2008,p.30.

36.ThomasClaburn,“GoogleToldtoRevealGmail‘Spybox’AccountInfoinCTOEspionageCase,”InformationWeek,October20,2008.

37.Ibid.

38.VintCerf,“TheInternetisforEveryone,”MemototheInternet

Society,April,2002.

39.JanineZacharia,“GoogleInc.NavigatesForeignLaws,”BloombergNews,June6,2008.

40.“GoogleCommittedto

StayinginChina,”PCMagazine,June9,2006.

41.DavidSmith,“GoogleDefiantOverCensorshipinChina,”

The

Observer,October29,2006.

42.“GoogleCommittedtoStayinginChina.”

43.Microsoftnewsrelease,October29,2008.

44.Ibid.

45.RoyBlountJr.,

“$125MillionSettlementin

AuthorsGuildv.

Google,”www.authorsguild.org/advocacy,October28,2008.

46.JonathanV.Last,

“GoogleandItsEnemies:TheMuch

-Hyped

ProjecttoDigitize32MillionBooksSoundsLikeaGoodIdea.Why

AreSoManyPeopleTakingShotsatIt?”WeeklyStandard,December10,

2007.

47.Ibid.

48.JeffersonGraham,“GoogletoSellBookstoBeReadOnlyOnline,”

USAToday,October29,208.

49.FromGoogle’swebsite,TheLibraryProject.

50.JonathanV.Last,“

GoogleandItsEnemies.”

51.KenAuletta,“SearchandDestroy.”

bnotes.indd308

3/25/092:42:32PM

Notes309

52.RobinJeweler,“TheGoogleBookSearchProject:IsOnlineIndexingaFairUse

UnderCopyrightLaw?”CongressionalResearchServices

(CRS)ReportsandIssueBriefs,December2005.

53.“MoreDigitizedBooksonInternetasGoogleSettlesLawsuit,

”

www.enews20.com,October

28,2008.

54.Ibid.

55.ReyhanHarmanci,“Google,BookTradeGroupsSettleLawsuits,”

SanFranciscoChronicle,October29,2008,p.C-1.

56.http://jobline.acc.com,“GoogleLegalOpportunities.”

57.EmilySteel,

“GoogleSearchAdsRileItsBigCustomers,

”Wall

StreetJournal,June4,2008.

58.Ibid.

59.“GoogleSaysViacomLawsuitaThreattoInternetUsers,”Reuters,May1,

2007.

60.KennethLi,“GoogleTakesaSwipeatViacom,”Reuters,July13,2007.

61.“MediasetSuesGoogle,YouTube;Seeks$780million,”Reuters,July30,2008.

62.Knol,Google’sinformationsource:

“GoogleOrderedtoReveal

BloggerIdentityinDefamationSuitinIndia.”

63.StevenEllis,“HighCourttoRuleonAgeDiscriminationSuit

AgainstGoogle,”MetropolitanNews-Enterprise,January31,2008.

64.JohnBattelle,The

Search:HowGoogleandItsRivalsRewrotetheRulesofBusinessandTransformedOurCulture(NewYork:PenguinGroup,2005),p.234.

65.ThePacketRat,“NetNeutralityDoesn’tGetGoogle’sFirst-ClassTreatment,”GovernmentComputerNews,July24,2006.

66.Ibid.

67.Corporatewebsite,www.google.com.

68.Ibid.

GOODCITIZENGOOGLE

1.FirstonCNBC:CNBCtranscript:CNBC’sJimCramerinterviews

EricSchmidt,GoogleChairmanandCEOonMadMoneywithJim

Cramer,Friday,November7,2008.

bnotes.indd309

3/25/092:42:32PM

310

NOTES

2.

JohnReidBlackwell,

“GoogleChief:InvestinEnergy

Independence:SchmidtUrgesFocusonWind,Solar,Other

RenewableSources,”RichmondTimes-Dispatch,October31,2008.

3.JoeTruini,“FeelingLucky:GoogletoSpendTensofMillionson

GreenEnergy,”WasteNews,December10,2007,p.1.

4.StephenShankland,“GoogleExecsCheeryaboutSiliconValley

Economy,”http://news.cnet.com/,September18,2008.

5.“GoogletoSpendMillionstoDevelopRenewableEnergyBusiness:

Google’sGoalIstoWorkwithOtherDevelopingTechnologiesthat

CanHarnessSolar,Geothermal,Wind,orOtherRenewable

EnergySources,”InformationWeek,

November27,2007.

6.JimOffner,

“AfterTheirTechEmpiresAreBuilt,

”E-Commerce

Times,November20,2008.

7.StephenShankland,“GoogleExecsCheeryaboutSiliconValley

Economy.”

8.JoeTruini,“FeelingLucky,”p.1.

9.“GoogletoSpendMillionstoDevelopRenewableEnergy

Business.”

GOOGLE’SFUTURE

1.StephenE.Arnold,“The

SummerofTransparency,”KMWorld,www.kmworld.com,August31,2008.

2.ElizabethMotalbano,“GrowingPainsforGoogle,”ComputerWorld,October20,2008.

3.KenAuletta,“SearchandDestroy,”TheNewYorker,January14,2008,p.30.

4.www.google.com/corporate/history.html.

5.ChrisTaylor,“ImaginingtheGoogleFuture:TopExpertsHelpUs

PlotFourScenariosthatShowWheretheCompany

’sGeniuses

MayBeLeadingIt...and

PerhapsAllofUs,”Business2.0,Time,January–February2006.

6.www.skynews.com,September5,2008.

7.EricSchmidtinconversationwithKenAuletta,SanFrancisco,

June11,2008.

bnotes.indd310

3/25/092:42:33PM

Notes311

8.NicholasCarlson,“RIPGoogleGoodTimes:SlowingHiring,Deals

andTravel,”www.alleyinsider.com,October21,2008.

9.MichaelLiedtke,“GoogleStockSoarson26pctJump

in3Q

Earnings,”APBusinessWriter,November14,2008.

10.Ibid.

11.PrabudevKonana,

“SensibleCapitalismNeeded,

”TheHindu,

December2,2008.

12.SaulHansell,“GoogleWantstoDominateMadisonAvenue,Too,”

NewYorkTimes,October30,2005.

13.LarryPage,speakingattheAmericanAssociationfortheAdvance-

mentofScience,San

Francisco,www.blogoscope.com,February

16,2007.

14.Ibid.

15.SaulHansell,“GoogleWantstoDominateMadisonAvenue,Too.”

16.http://www.youtube.com/user/IgnoranceIsntBliss

,October28,2000.

17.www.law.com/jsp/legaltechnology/pubArticleLT,August20,2007.

18.AndyGreenberg,“GoogleGrowsUp,”BusinessWeek,January11,2008.

19.Ibid.

20.JasoSzep,“Technology

ReshapesAmerica’sClassrooms,”Reuters,July7,2008.

21.GregoryM.Lamb,“WithNewWebServices,MoreCompaniesAre

Workinginthe

‘Cloud,’”www.features.csmonitor.com/innova-

tion,November11,2008.

22.“TechnologyWillContinuetoDrivetheWorkingLivesofYoung

People,”KalamazooGazette,www.kzgazette/2008/06/google,June4,2008.

23.Ibid.

24.JasoSzep,“TechnologyReshapesAmerica’sClassrooms.”

25.JeremyCaplan,“Google’sChiefLooksAhead,”Time,October2,2006.

26.GregoryM.Lamb,“WithNewWebServices,MoreCompaniesAre

Workinginthe‘Cloud.’”

27.TimO’Reilly,

“MyCommencementSpeechatSIMS,

”O’Reilly

Radar,http://radar.oreilly.com,May14,2006.

bnotes.indd311

3/25/092:42:33PM

312

NOTES

28.GoogleInc.,FormS1RegistrationStatement,Securitiesand

ExchangeCommission,April29,2004,p.15.

29.MadMoney,CNBC,August13,2008.

30.LawrenceDonegan,“YouTubeLive:StarsofOnlineVideoTakea

RealWorldBow,”TheGuardian,November24,2008.

31.MichaelLiedtke,“YouTubeFlipsSwitchonNewSalesChannel,”

AssociatedPress,October6,2008.

32.JohnBattelleinterviewwithEricSchmidt,Web2.0Expo,April17,2007.

33.www.google.com.

34.BetsySchiffman,“EricSchmidt:GoogleMissionIsto‘ChangetheWorld,’”Wired.com,June11,2008.

35.FromtheOfficialGoogleBlog,

“TheFirstAndroid

-Powered

Phone,”Ackerman,September23,2008.

36.EliseAckerman,“LookOutI,Here’sG,”SanJoseMercuryNews,September24,2008.

37.JuanCarlosPerez,“GoogleReleasesAndroidSDK,”AustralianPC

World,Summer2008,p.16.

38.NewYorkTimesweblog,June23,2008.

39.LeslieCauley,“GoogleVaultsintoGlobalWirelessRingwithG1

Phone,”USAToday,September24,2008,p.3B.

40.MargueriteReardon,“FCCOpensFree‘WhiteSpace’Spectrum,”

CNETNews,News.cnet.com,November4,2008.

41.NateAnderson,“GoogleWhiteSpacePetition:13,000Signatures

andCounting,”Arstechnica.com/news,September2,2008.

42.WirelessCommunicationsAssociationConference,SanJose,

November6,2008.

43.AndrewLaVallee,“ASecondLookatCitiwideWi-Fi,”WallStreetJournal,”December8,2008.

44.LarryPage,Google’sWhiteSpaceBlog,andIDGNewsService,

November5,2008.

THEDOMINANTPOWER

INTHEINDUSTRY?

1.RobertHof,“IsGoogleTooPowerful?”BusinessWeek,April9,2007.

2.DavidSmith,“TheObserver,”TheGuardian,August17,2008.

bnotes.indd312

3/25/092:42:33PM

Notes313

3.MattHartleyandGrantRobertson,“Google@10,”TheGlobeand

Mail,September6,2008.ReprintedwithpermissionofTheGlobeandMail.

4.BenOliver,“TheBattery-PoweredSupercarthat’sElectrifyingtheWorld,”www.dailymail.co.uk,

November11,2008.

5.RobertHof,“IsGoogleTooPowerful?”

6.EstherDyson,“GoogleMeetsItsMotto—forNow,”TaipaiTimes,

December22,2008,p.9.

7.KenAuletta,“TheSearchParty,”NewYorker,January14,2008.

8.RobertHof,“Google’sMayer:StayingInnovativeinaDownturn,”

BusinessWeek,December14,2008.

9.EstherDyson,“GoogleMeetsItsMotto—forNow.”

10.JoshReynolds,

“Google,eBayBattlingOver

PaymentService,

”

AssociatedPress,June15,2007.

11.Ibid.

12.Ibid.

13.MattHartleyandGrantRobertson,“Google@10.”

14.JeremyCaplan,“Google’sChiefLooksAhead,”Time,October2,2006.

15.ElinorMills,“MicrosoftWon’tMakeaNetscapeofUs,”CNET

News,May11,2006.

16.FromTheGoogleStory

byDavidA.ViseandMarkMalseed,

copyright©2005,byDavidA.Vise.UsedbypermissionofDell

Publishing,adivisionofRandomHouse,Inc.

17.MadMoney,CNBC,August12,2008.

18.TerryMcCrann,

“RupertMurdoch

’sNewWorldOrder,

”Herald

Sun(Australia),November1,2008.

19.http://www.wired.com/wired/archive/12.03,google_pr.html.

20.JeffreyHerron,“Schmidt:IndependentYahoo!BetterforCompeti-

tion,”AssociatedPress,June12,2008.

21.Ibid.

22.RichardWaters,

“WhyGoogleShouldHeedtheDoJ

’sWake

-up

Call,”blogs.ft.com/techblog/2008,November5,2008.

23.“GoogleBailsOutofYahoo!AdDeal,

”AOLMoney

&Finance,

money.aol.com/news,November5,2008.

24.“MicrosoftCEO:NoInterestinBuyingYahoo!,”AssociatedPress,Sydney,Australia,November7,2008.

bnotes.indd313

3/25/092:42:34PM

314

NOTES

25.DavidLyons,“Tough

Customers,”ForbesGlobal,April7,2008,p.69.

26.ClaytonHarrison,“Yahoo!’sYangFacesSaggingProfitAfterIcahnRow,”Bloomberg.com,July22,2008.

27.MichaelHelft,“GoogleEndsMicrosoft’sYahoo!Search,”NewYorkTimes,May6,2008.

28.

JasonKottke,

“PlayboyInterview:GoogleGuys,

”Playboy,

September24,2004.

29.DavidA.ViseandMarkMalseed,TheGoogleStory,p.250.

30.DiscussionbetweenauthorandBillGates,BerkshireHathaway

annualmeeting,May2,2008.

31.AdamL.Penenberg,

“IsGoogleEvil?ItKnowsMorethanthe

NationalAgencyEverWill.AndDon’tAssumeforaMinutethat

ItCanKeepaSecret,”MotherJones,November–December2006,p.67.

CONCLUSION

1.http://www.wired.com/wired/archive/12.03,google_pr.html.

2.SergeyBrin,Web2.0Conference,October9,2005.

3.MichaelLiedtke,“Google

SearchesforItsPlaceintheFuture,”

AssociatedPress,September14,2008.

4.RobertHof,

“IsGoogleTooPowerful?

”BusinessWeek,April9,

2007.

5.MattHartleyandGrantRobertson,“Google@10,”TheGlobeand

Mail,September6,2008.ReprintedwithpermissionofTheGlobeandMail.

6.ChrisO’Brien,

“InvincibleNoMore

?”SanJoseMercuryNews,

August24,2008,p.E1.

7.StephenShankland,“GoogleExecsCheeryaboutSiliconValley

Economy,”http://news.cnet.com/,September18,2008.

8.HenryBlodget,“GoogleSucksLifeOutofOldMedia:CheckOut

the2007ShareShift,”AlleyInsider,www.alleyinsider.com,March14,2008.

9.Ibid.

10.MichaelLiedtke,“GoogleSearchesforItsPlaceintheFuture.”

bnotes.indd314

3/25/092:42:34PM

Permissions

Permissionhasbeengrantedbythefollowingorganiza-

tionsandindividualsforquotesappearinginthisbook:

KenAnletta

BusinessIndia

TheGlobeandMail

KMWorld

PlayboyMagazine

RandomHouse

SpiegelOnline

315

both03.indd315

3/26/099:36:40AM

LO

—continuedfromfro

ntflap—

$19.95USA/$23.95CAN

Praisefor

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businessstrategiesandnew

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andchangedthewaywelookatcorporate

responsibilityandemployeerelations—Lowe

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culturethatencouragescreativityamongits

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ascopyrightinfringement,antitrustconcerns,and

SecretsoftheWorld’sGreatestBillionaireEntrepreneurs,

personalprivacyandposesthequestionalmost

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veryseriously,investingin

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everysuccessfulcompanymustface:asGoogle

word.”

grows,canitholdontoitsentrepreneurialspiritas

—WarrenBuffett

l

wellasitsinformalmotto,“Don’tdoevil”?

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developingthelargestcorporatefoundationin

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SPEAK

SpeaksandJackWelchSpeaks—whichcontaina

conversationalstylethatsuccessfullycapturesthe

Whatstartedoutasauniversityresearchproject

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essenceofthesebusinessleaders—GoogleSpeaks

conductedbySergeyBrinandLarryPagehas

PresidentofMoveon.Org

revealstheamazingstorybehindoneofthemost

endeduprevolutionizingthe

worldwelivein.

GoogleSpeaksputstheseincredibleentrepreneurs

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importantnewcompaniesofourtimebyexploring

thepeopleandphilosophiesthathavemadeita

inperspectiveandshowsyouhowtheirdriveand

knifeofinformationretrieval.”

globalphenomenoninlessthanfifteenyears.

determinationhaveallowedthemtocreateoneof

—LloydGrove

today’smostpowerfulcompanies.

ENTREPRENEURS

SECRE

columnist,Portfolio.com

TSoftheWORLD’SGREA

Writtenbybestsellingauthor

JanetLowe,thisbook

offersanengaginglookathowGoogle’sfounders,

JANETLOWEistheauthorofthebestselling

“Who’safraidofGoogle?Everyone.”

SergeyBrinandLarryPage,transformedtheir

WarrenBuffettSpeaks,JackWelchSpeaks,and

,SERGEY

—Wiredmagazine

visionofabetterInternetsearchengineintoa

BillGatesSpeaks,allfromWiley.Herarticleshave

BRINandLARR

businesscolossuswithabout$16billioninannual

appearedinsuchpublicationsasNewsweek,the

“Writersofthepasthadabsinthe,whiskeyorheroin.IhaveGoogle.”

revenue.LowediscussesthevaluesthatdriveBrin

ChristianScienceMonitor,

theLosAngelesTimes,

TESTBI

—MichaelChabon

andPage—

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authorofTheAmazingAdventuresofKavalierandClay

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JacketIllustration:©MichaelWitte

havecreatedaculturethatfostersfunwhile,at

thesametime,keepingGoogleattheforefrontof

technologythroughrelentlessR&Dinvestments

andimaginativepartnershipswithorganizations

suchasNASA.

8/<3B:=E3

—continuedonbackflap—

DocumentOutline

GoogleSpeaks:SecretsoftheWorld'sGreatestBillionaireEntrepreneurs,SergeyBrinandLarryPage

ContentsAcknowledgmentsIntroduction

TheGoogleGuysSERGEYBRINLARRYPAGETESLA’SSTORYTHEPOWEROFPARTNERSHIPNETWORKINGATITSBESTBURNINGMAN

AdultSupervision

THECOLLECTIVEWISDOMOFSILICONVALLEYHE’SBEENTHEROCK;THEY’VEBEENTHEROCKETSAMANOFINFLUENCECLIMBINGADIFFERENT

KINDOFMOUNTAIN

IntheBeginningTHEULTIMATESEARCHENGINENOTINVENTING,BUTIMPROVINGUPONLOOKAROUND

YOUFORINSPIRATIONHOWSEARCHWORKSPLATFORMPOWEROPENPLATFORM

GoogleByAnyOtherName

ABLESSEDBLUNDERFROMNOUN

TOVERBPLAYINGWITHTHENAMETHEGOOGLELOGOTHEGOOGLEDOODLEGOOGLEZEITGEIST

ACompanyIsBornYAHOO!

DREWTHEMAPTHEREQUISITEGARAGETHEVENTURECAPITALISTSTHEELUSIVEBUSINESSPLANINVESTINGINWILD

IDEASGOODIDEASPUTTOGOODUSEDEALINGWITHDARKMATTERAVERSIONTOADVERTISINGADVERTISINGTHATDELIVERSRESULTS

TWOWAYSTOADVERTISE:ADWORDSANDADSENSEEXTENDINGTHEGOOGLEREACHTHESCIENCEOFADVERTISINGGOOGLE

DIDN’TADVERTISEITSELF—ATFIRSTBIRTHOFTHEGOOGLEECONOMY

GoingPublic“WE’REDIFFERENT”THEDUTCHAUCTIONTHE

INTERVIEWTENYEARSLATER

TheVisionMAKEITUSEFULTHEMANYWAYSTOGOOGLEMAKEITBIGMAKEITFUNDON’TDOEVIL

MAKEITFREE

GoogleCultureNEWMANAGEMENTSTYLETENTHINGSGOOGLEHASFOUNDTOBETRUERIDINGTHELONGTAIL20PERCENTPROJECTS

PERPETUALBETAFABLEDWORKPLACEANALTERNATIVEPOINTOFVIEWGOOGLEPLEXGOOGLEINIRELANDTOPTENREASONSTOWORKAT

GOOGLETHEBATTLEFORBRAINPOWERGUARDINGTHESECRETS

GoogleGrowsUpCONFLICTSANDCONTROVERSYPRIVACYISSUEADVERTISING

PRODUCTSGMAILSTREETVIEWCANTHEYSNOOP—ANDWILLTHEYTELL?HELLO,HUMANRIGHTSTHEGREATCHINESEFIREWALL

PRINCIPLESOFFREEDOMCOPYRIGHTINFRINGEMENTTHEAUTHORS’REVOLTTHEGAME-CHANGINGSETTLEMENTLAWSUITSEVERYWHEREGOOGLE

GETSANAIRPLANEGOOGLEGETSASATELLITE

GoodCitizenGoogle

GOOGLE.ORG—THEPHILANTHROPICPARTGOOGLEANDTHEENVIRONMENT

RENEWABLEENERGYLESSTHANCOALGEOTHERMALPOWERENERGYFROMTHESEAENERGY-EFFICIENTGOOGLEPLEX

Google’sFutureARTIFICIAL

INTELLIGENCEONWARDTOWEB3.0CLOUDCOMPUTINGYOUTUBETHEGOOGLEPHONEWHITESPACES

TheDominantPowerintheIndustry?

GOOGLE,MICROSOFT,ANDTHEINTERNETCIVILWARTHEBATTLEOFYAHOO!GATESONGOOGLE

ConclusionLESSONSFROMLARRYANDSERGEY

THETRAITSOFTHOSEWHOCHANGETHEWORLD

TimelineGlossaryNotes

INTRODUCTIONTHEGOOGLEGUYSADULTSUPERVISION

INTHEBEGINNINGGOOGLEBYANYOTHERNAMEACOMPANYISBORNGOINGPUBLICTHEVISIONGOOGLECULTUREGOOGLEGROWSUP

GOODCITIZENGOOGLEGOOGLE’SFUTURETHEDOMINANTPOWERINTHEINDUSTRY?CONCLUSION

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